Gold slides on markets higher risk appetite

In today's morning session, gold declined to $1,205 per troy ounce, amid investors improving appetite for riskier assets. It dropped below the €1,100 per troy ounce level, in euro terms. On Friday, gold had already fallen following U.S. core inflation data, which was better than expected in January. This resulted yields on the 10- year U.S. treasuries to rise marginally and slightly improve the prospects of Fed interest rate hike.

Gold ETF recorded an inflow of 25.4 tons on Friday, marking its most prominent daily inflow since October 2011.  The CFTC's statistics shows that speculation in the market drove the gold price to a twelve-month high as net long positions in gold grew to 81,000 contracts in the week to 16 February, their highest level since October end.

Silver prices also touched a 3½-month high on the back of speculation. Net long positions at 47,700 contracts inched near to its highest level. China increased its silver imports, benefiting out of the previously low silver prices. Silver imports summed up to 329 tons in January, its highest January figure in five years, according to data figures from the customs authorities