GOLD eased yesterday, hurt by gains in the dollar index and fresh outflows from bullion-backed funds, with traders cautious ahead of a US holiday and this weekend’s Swiss referendum on central bank bullion assets.
In London, gold fixed at $1 194.75 an ounce (R421 593 a kilogram) in the afternoon, down $2.75 from Wednesday’s second fix.
The dollar climbed against a basket of currencies, with the euro falling against the US unit after data showed German inflation appeared to have softened in November. That has raised expectations that the European Central Bank will resort to more aggressive easing of monetary policy.
However, gold’s push lower has slackened in the absence of fresh news.
“Everybody already thinks the dollar is going to continue to strengthen next year… and that US interest rates are going to rise… so to a certain extent that has already been priced in,” Citi analyst David Wilson said. “Maybe the market is now looking for what the next driver is going to be.” – Reuters