Gold futures are trading weak, however the movement has been range bound with traders focusing on the European summit later this week. The metal jumped in Monday's session as pessimism about this week's European Union summit helped drive investment demand. European stock markets opened higher Tuesday, after a survey reportedly showed a surprise improvement in German consumer sentiment.
The summit, scheduled for Thursday and Friday, is looked at as a key moment for EU officials to finally announce details about plans that could stem the region's smoldering debt crisis and how to jump-start a stagnant economy.
But market participants are already starting to minimize expectations a few days before the summit begins. The euro slid to start the new trading week as investors grow increasingly pessimistic that any major announcements will come out of the upcoming European Union summit.
Spain and Cyprus formally requested bailouts Monday, becoming the fourth and fifth members of the 17-nation common currency bloc to ask for aid adding to the euro's woes. The countries, however, didn't request specific amounts of funding and no details on terms or conditions for the support are known, adding to uncertainty permeating the market. That uneasiness added to the euro's weakness throughout the session.