Overseas gold prices which touched US $1,593 a troy ounce witnessing a weak investor sentiments.

Europe has played a very key role driving prices at this level. Lingering debt crisis in euro zone is one of the main reasons for the movement in gold and silver prices. They are skeptical over recovery of the euro zone debt crisis. Euro has slipped sharply against the US dollar and the basket of currencies.

Investors are finding dollars on the flip side, US dollar has been appreciating against all major currencies.

Much of the movement in gold can be blamed on questions about Europe's efforts to resolve its sovereign debt crisis and what the impact on the global economy will be.

Wild swings in gold prices have tarnished its reputation as a safe haven, and bullion has moved in tandem with riskier assets in the past few months.

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