LONDON, April 8: Gold prices eased in Europe on Friday as the dollar rallied towards a two-month peak against the euro, dealers said. Spot gold had dipped to $425.10/425.90 an ounce by 1058 GMT from $426.00/426.80 late in New York on Thursday. The US currency strengthened on renewed expectations for further monetary tightening, which tends to boost demand for dollar deposits and dull the allure of metals denominated in that currency. The dollar’s gone up and that has made the market dip, but we’re still in ranges, a gold dealer said.
The fact that we’ve held at these levels for a while may mean we’re in for a bit of a break higher, he added.
Gold has struggled to maintain momentum since falling over 4.5 per cent from this year’s peak of $446.70 on March 11. The price has been stuck recently in a $422-$428 range, failing to find fresh buyers at the higher levels.
Gold and the rest of the precious metals have weakened in the same pattern as the euro but not to the same degree, which is a positive signal and suggests that a latent bullishness towards the complex continues, Barclays said in a daily report.—Reuters
