Gold around $1205 as ECB Sparks Euro Rebound

Gold settled modestly lower on Thursday as the euro rebounded against the dollar after European Central Bank chief Mario Draghi said the bank would reevaluate the case for more stimulus next year, but remained under pressure ahead of key U.S. data on Friday.

Strength in the U.S. currency makes dollar-denominated gold more expensive for holders of other currencies.  Investors had been looking for a clear sign from Draghi that the ECB was heading for a move into the sort of outright printing of money, or quantitative easing, carried out by other central banks in recent years.

Spot gold was last at $1,206.87 an ounce, down 0.2 percent but off an earlier low of $1,201.07, while U.S. gold futures for December settled down $1.00 at $1,207.70. The euro bounced from a 28-month low to rise 0.3 percent.


This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.