Seeing the US trade deficit narrow this morning actually seemed to ease the anxiety over the US's financial vulnerability and that in turn appears to be reducing the flight to safety demand for gold in the first half of the trading session. Lower US imports in the trade balance report might also hint at a slowing in the US economy which could be another factor weighing on gold, silver and copper prices in the morning trade. Another period of strong Indian festival demand has passed with what seemed to be only marginal interest and that might also be seen a bearish development for gold prices. News of a new ETN (Exchange Traded Note) on platinum seemed to be behind the sharp initial gains in platinum futures this morning and that might have mitigated the selling pressure in gold somewhat.