By Alan fein

(AXcess News) New York - After the price of gold broke through the $1200 mark much of the movement was blamed on equities, though the flight to risk factor doesn't seem to hold a shine and gold prices in the short-term will most-likely head lower, say experts.

In early afternoon trading in New York, July gold was down $2.40 per ounce, or 0.2%, at $1,192.40.  Spot gold prices were moving up with the bid at $1,201.20 for a gain of $7.10, or 0.59%.

"Short-term price momentum for precious metals remains lower," said StandardBank precious metals analyst Walter de Wet. "Tactically we look for more downside, although strategically on a 3 - 6 month horizon we remain long precious metals."

The precious metals analyst says the Bank is keeping a close eye on EU debt and the price of the euro currency, saying European Central Banks are selling gold to raise cash.

"If the depreciation of the euro is over a number of months, we believe any negative impact on precious metal prices would be small. However, should the euro depreciate in a fast and disorderly fashion we believe even gold will experience short-term liquidation," concluded de Wet.