Gold prices steady

Gold prices steadied yesterday ahead of a European Central Bank (ECB) policy meeting expected to present a cut in economic growth forecasts, with investors also awaiting US jobs data.

Spot gold was flat at $1 285,94 an ounce at 1038 GMT, trading close to a more than five-week low hit this week.

US gold futures were down 0,1 percent at $1 286,50.

Global shares were stuck in their worst run of the year and the euro took a breather as investors awaited news from the ECB, which could also signal fresh stimulus for euro zone banks in an effort to stop an unexpected slowdown from becoming a downturn.

“If the euro depreciates in response – for example, because the ECB lowers its projections or changes its interest rate outlook – the gold price is likely to come under pressure,” Commerzbank analysts said in a note.

“If so, gold in euro terms should then fare somewhat better, however.”

Spot gold prices hit a 10-month peak of $1 346,73 on February 20 but have since lost ground as the dollar revived and US Treasury yields rose. — Reuters.

Source:the herald

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