Gold prices came under pressure, after the President of the ECB gave signs that it will continue its policy of monetary easing, as the turmoil in global markets and the weakening of growth in developing countries. However, gold is still on course for a record weekly price increases.
Today (22/1), spot gold was trading flat at around 1,099.20 per troy ounce, or down about 0.2 percent. However, in the weekly time period, the precious metal is still up 1 percent after touching its highest level of USD 1,109.20 on Wednesday (20/1) then. While on the Comex, gold futures contract for February delivery rose 12:32 per cent to USD 1,101.70 per troy ounce, after a day ago closed at 1,098.20 US Dollars.
President of the European Central Bank (ECB), Mario Draghi said that the decline of economic growth and inflation projections will force the ECB to conduct a review of its monetary policy in March. The statement is considered a strong signal about further monetary easing in the coming months. Euro immediately slumped significantly against the US dollar after Draghi statement, which affects the price of gold.
Bullion support the transfer of risk among investors when global stocks and oil prices fell. Although the demand for physical gold is still slowed from major consumer China and India, which limit further price gains. Premium Gold prices rose sharply in China this week, while the seller in India offer discounts against declining demand.
Today (22/1), spot gold was trading flat at around 1,099.20 per troy ounce, or down about 0.2 percent. However, in the weekly time period, the precious metal is still up 1 percent after touching its highest level of USD 1,109.20 on Wednesday (20/1) then. While on the Comex, gold futures contract for February delivery rose 12:32 per cent to USD 1,101.70 per troy ounce, after a day ago closed at 1,098.20 US Dollars.
President of the European Central Bank (ECB), Mario Draghi said that the decline of economic growth and inflation projections will force the ECB to conduct a review of its monetary policy in March. The statement is considered a strong signal about further monetary easing in the coming months. Euro immediately slumped significantly against the US dollar after Draghi statement, which affects the price of gold.
Bullion support the transfer of risk among investors when global stocks and oil prices fell. Although the demand for physical gold is still slowed from major consumer China and India, which limit further price gains. Premium Gold prices rose sharply in China this week, while the seller in India offer discounts against declining demand.
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