Gold Prices Could Lose Ground As Euro Drops Against USD

London (Mar 5)  Gold prices are just barely holding above the $1,200 early Thursday morning with Comex April gold futures last trading at $1,200.90 an ounce just a head of the European Central Bank monetary policy decision. Commodity analysts from HSBC note that gold could continue to suffer as the euro loses ground against the U.S. dollar. They explain that gold was driven below the key psychological support area of $1,200 Wednesday as the U.S. dollar hit an 11-year high against the euro as traders positioned for the ECB meeting. Sam Laughlin, analyst at MSK, agrees that the U.S. dollar strength is weakening gold prices and there could be more risks following the ECB rate decision. “Gold continues to weaken and USD $1,198 will be the first support level, he says.

Source: KitcoNews