Black Friday is Now! Don’t miss out on up to 60% OFF InvestingProCLAIM SALE

PRECIOUS-Gold dips as ECB knocks euro, equities recover lost ground

Published 2016-01-21, 03:38 p/m
© Reuters.  PRECIOUS-Gold dips as ECB knocks euro, equities recover lost ground
XAU/USD
-
XAG/USD
-
SOGN
-
GC
-
SI
-
PA
-
PL
-

* ECB hints at prospect of further stimulus for euro zone
* Gold struggles to maintain push above $1,100/oz
* GRAPHIC-Commodities in 2016: http://link.reuters.com/reb25t

(Adds comment, byline, NEW YORK dateline; updates prices)
By Marcy Nicholson and Jan Harvey
NEW YORK/LONDON, Jan 21 (Reuters) - Gold fell on Thursday
after posting its biggest one-day gain in two weeks the day
before, as hints of further stimulus from the European Central
Bank hurt the euro and a rebound in global stocks curbed risk
aversion.
Turmoil in financial markets and concerns over China and
other emerging markets will prompt a March review of the ECB's
monetary policy, President Mario Draghi said after a meeting,
holding out the prospect of further loosening.
Spot gold XAU= was down 0.1 percent at $1,099.70 an ounce
at 3:13 p.m. EST (2013 GMT), after falling 0.8 percent to
$1,092.15. It pared losses as the U.S. dollar turned lower.
U.S. gold futures GCv1 for February delivery settled down
0.7 percent at $1,099.20 an ounce.
"After Wednesday's $25 per ounce uptick in gold prices
fueled by the global equity market selloff, today gold was
dragged lower by profit taking, recovering equity markets, and a
stronger U.S. dollar," said Giovanni Staunovo, commodities
analyst at UBS Wealth Management in Zurich.
Oil prices and global equity markets rebounded, following a
turbulent few days that wiped trillions of dollars off asset
values, though it was unclear whether the vigorous selling
action had come to an end. MKTS/GLOB
"Draghi's dovish remarks seem to have improved risk
sentiment somewhat - the yen is lower and gold also a touch
lower," ABN Amro analyst Georgette Boele said.
"The market was cautious ahead of the meeting and he sounds
dovish. That is negative for the euro."
The dollar rose to its strongest against the euro in two
weeks on Draghi's comments. USD/
"You're not seeing so much safe haven bidding, although that
is probably supporting the market," Societe Generale (PA:SOGN) analyst
Robin Bhar said.
"As the price inches higher, you're just losing steam from
the physical markets. The physical buying is maybe not there to
mop up any excesses, and for the moment gold appears to be
struggling."
Physical gold demand in Asia slowed this week as prices
rose, curbing seasonal buying in China ahead of a big holiday
and forcing sellers in India to offer a discount. GOL/AS
Among other precious metals, platinum XPT= was up 0.05
percent at $818.40 an ounce, after falling to a 7-year low at
$806.31.
Palladium XPD= was up 0.9 percent at $497.30 an ounce and
silver XAG= was down 0.4 percent at $14.11.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.