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Gold came under downward pressure in Friday’s session but prices remain fairly unchanged for the day, with physical demand providing support, as are growing concerns of slowing global growth centred on Europe.
Spot gold was last at $1,222.90/1,223.70 per ounce, down $1.90 on Thursday’s closing level but up almost $40 on Monday’s 15-month low.
The precious metals have handed back the gains made in Thursday’s session after the dollar regained ground against the euro following a speech from ECB president Mario Draghi calling for structural reform within the eurozone.
The bloc has been struggling with weak data recently, notably German exports falling 5.8 percent in August, the worst decline since January 2009.
The IMF earlier this week suggested there is a 40-percent chance the eurozone could slip back into recession, which pushed the euro back to lows of 1.26 against the dollar – it was last at 1.2624.
In data this afternoon, US import prices at -0.5 percent were in line with forecast, although the previous month’s reading was upwardly revised to -0.6 percent. Later, the US federal budget balance is due and FOMC member Richard Fisher is set to deliver a speech.
In the other precious metals, silver was last at $17.30/17.35 per ounce, down 1 cent, platinum slipped $7 to $1,257/1,262 and palladium was down $8 at $780/786.
News article attributed to www.bulliondesk.com