Stronger U.S. Dollar Hammering Euro And Gold

Frankfurt (Mar 6)  Both the euro and gold prices remain under significant pressure from the U.S. dollar. The strong greenback has pushed gold prices below the key psychological level of $1,200 an ounce and has pushed the euro to a 12-year low. Currently spot EUR/USD is trading at 1.09642, down more than 0.5% on the day. Comex April gold futures are trading at $1,195.30 an ounce, flat on the day. According to some analysts the euro is expected to remain in a continued downtrend as the European Central Bank starts buying government debt March 9. Currency analysts from BNP Paribas say they are expecting the EUR/USD to fall to a low of 1.08 but other analysts are talking about the possibility of the euro hitting parity against the greenback. However, euro weakness is making gold attractive to European investors as the yellow metal is up against the single currency Friday. Spot gold/EUR last traded at €1090.78, up €4.62 or 0.43% on the day.

Source: KitcoNews