A weaker euro versus the dollar erodes the buying power of Eurozone investors for gold, which is priced in the US currency.
In the previous session, it hit its highest in nearly three years but shed its early gains to end 2.3% lower.
London: Gold slipped on Thursday after the euro lost ground against the dollar and as investors awaited the outcome of Britain’s national election and testimony from former FBI director James Comey.
An extension of gold’s gains up ahead raises the risk that many would have to play catch-up,” she said.
“The sentiment on the market at the moment is that gold is a ‘buy on dips’.
Gold fell for the second day after the ECB decision
as mentioned in U.S. gold futures for August delivery shed 1.1 percent to settle at $1,279.50.
A weaker euro versus the dollar erodes the buying power of euro zone investors for gold, which is priced in the U.S. currency.
Spot gold was down 0.7 percent at $1,277.95 an ounce by 4:04 p.m. EDT (2004 GMT).
By Devika Krishna Kumar and Eric OnstadNEW YORK/LONDON (Reuters) – Gold prices extended losses into a second session on Thursday as the dollar strengthened and as investors viewed the testimony from former U.S. FBI director James Comey as containing no significant surprises.
However, he did not make any major new revelations about alleged links between Trump or his associates and Russia.
collected by :Victor Alphen