Draghi pulls down Gold, volatile ahead of US job data

LONDON (July 5) Gold futures tumbled as European Central Bank President Mario Draghi said that interest rates will remain low or go lower "for an extended period of time”. Weakness in Euro set further pressure on gold prices.

The European Central Bank held its benchmark interest rate at a record low in July, in a bid to boost wavering growth in the region, it announced on Thursday. The ECB said it was maintaining its benchmark interest rate at a record low 0.5%, in line with market expectations.

U.S dollar index quoted affirmative at 83.89 with gain of 0.81%. High demand from oil importers and Bankers kept dollar in positive territory.

Gold had lost 23 percent in the April-June period on reports that U.S. Federal Reserve's monetary policy could end soon. Hence it supported a rise in interest rates, making gold less attractive.
 

On COMEX, gold for August delivery was trading down $12.5 at $1,239.4 an ounce. Spot gold was last quoted losing $11.4 at $1,124.1.