Gold eased lower as the G20 meeting of industrial countries got underway.
Any sign of a concerted effort to get the global economy moving again may sap some the safe haven momentum has seen this year so far.
So far, though, there has been little sign of that and the mood generally surrounding gold is upbeat.
It was Deutsche Bank’s turn to be bullish today as it tipped gold as insurance against the current economic turbulence.
Stresses in the financial system are rising, it said, with the US corporate default cycle and the risk of a sharp one-off renminbi devaluation due to the sharp increase in China's capital outflows.
“Buying some gold as 'insurance' is warranted," said the bank.
While acknowledging the metal is still not cheap by historical standards, “given the plethora of negative deposit rates globally, the holding cost of gold is now negligible in many jurisdictions”.
The bank now expects gold to be around US$1,230 by the end of the year compared to its previous forecast of US$1,000.
Two hours into US trading, spot gold was US$6 lower at US$1,226. Silver dropped to US$14.88, while platinum dropped US$5 to US$918.
Major share moves
Randgold Resources down 10p at 6,445p
Fresnillo up 8p at 998p
Anglo American up 23p at 446p