THE London market started on the back foot despite a bounce back among mining stocks as gold prices steadied after hitting five-year lows yesterday.
The FTSE 100 Index was 18.8 points down at 6769.8, after the gold price fell to below $1,100 (£706) an ounce for the first time since March 2010 in the previous session.
Gold prices were driven lower by speculation about a US rate hike and aggressive selling, before rallying to close 2.5 per cent down at $1,104.60 (£709).
But as the precious metal recovered from yesterday's so-called flash crash, miners hit in the sell-off rebounded, with Fresnillo up 2 per cent or 15p to 644p, while gold miner Randgold Resources lifted 46p to 3863p.
Royal Mail saw shares drift lower after it delivered flat revenues in the first three months of the year as "challenging" trading saw letter revenues fall and parcel sales rise.
It said letter volumes were down 5 per cent and sales down 4 per cent in the quarter to June 28, compared with a year ago, in a tough environment that continues to see email eat into mail deliveries.
But its parcels unit saw volumes lift 3 per cent and sales rise 2 per cent in the period, as cost cutting and other new initiatives introduced in the second half of the year took effect. Shares slipped 3p to 508.5p.
