Gold Dips As Dollar Strengthens

Gold prices fell slightly on Thursday as the dollar gained ground following more dovish sounding from central banks.

Spot gold and U.S. gold futures slid around 0.4 percent to $1,311.45 per ounce and $1,311.65, respectively.

The U.S. dollar rose against rival currencies following dovish comments from the European Central Bank and the Reserve Bank of New Zealand.

The ECB may ease its monetary policy once again after President Mario Draghi said that “adjusting rate forward guidance” is an option to fulfill the bank’s inflation target of close but below 2 percent.

Elsewhere, after keeping interest rates unchanged, the Reserve Bank of New Zealand indicated that its next move would be to lower interest rates.

The dollar was also boosted by a bout of Brexit blues after U.K. MPs, who have seized control of the parliamentary timetable from the government, failed to rally behind any single option.

Meanwhile, media reports suggest that the U.S. and China are likely to conclude ongoing trade negotiations, most likely in the next month or so.

Reuters said citing U.S. officials that there has been progress on all fronts under discussion, though no definite timetable to reach a final deal was laid out.

The material has been provided by InstaForex Company – www.instaforex.com

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