Gold hardly moves, deflation fears resurface


27/06/2012 05:32 AST  Business Standard

Gold was little changed around $1,571 a n ounce on Wednesday after falling in the previous session on worries that a global economic slowdown triggered by a worsening debt crisis in Europe could prompt investors to turn to the safety of the U.S. dollar.

Inflation fears helped gold stretch its winning run to an 11th year in 2011, but investors now feel uneasy about deflation after recent reports showed signs of slowing global economic activity, already dented by the debt crisis in Europe.

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