Breaking News

Gold drops as Draghi warns eurozone economy still weak

CommoditiesFeb 08, 2013 01:49PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items

Investing.com - Gold prices fell on Friday after European Central Bank President Mario Draghi warned that the eurozone economy won't see noted recovery until closer to the end of the year.

On the Comex division of the New York Mercantile Exchange, gold futures for April delivery were down 0.24% at USD1,667.35 a troy ounce in U.S. trading on Friday, up from a session low of USD1,665.95 and down from a high of USD1,674.15 a troy ounce.

Gold futures were likely to test support USD1,664.05 a troy ounce, Thursday's low, and resistance at USD1,683.85, Thursday's high.

On Thursday, ECB President Draghi warned that economic weakness would stick around during the early part of 2013 and added recovery would kick in later”in the year, which weighed on the euro against the dollar, often a recipe for falling gold prices.

Draghi added that the euro's recent strengthening trend reflected a return of investor confidence in the eurozone.

The metal did see support on solid U.S. and Chinese trade data.

The U.S. Commerce Department reported earlier that U.S. trade deficit in December narrowed to USD38.5 billion from a USD48.6 billion deficit in November.

Analysts were expecting the trade deficit to only narrow to USD46 billion.
Meanwhile in Asia, the Chinese trade surplus fell in January from December thanks to a surge in imports, fueling talk of an improving global economy.

The country's trade surplus hit USD29.20 billion last month, down from a USD31.60 billion surplus reported in December.

Analysts were expecting a USD22 billion surplus.

Meanwhile on the Comex, silver for March delivery was up 0.19% and trading at USD31.462 a troy ounce, while copper for March delivery was up 0.87% and trading at USD3.760 a pound.

Gold drops as Draghi warns eurozone economy still weak

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Post also to:
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Post 1000
Please wait a minute before you try to comment again.
Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Add Chart to Comment
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
Sign up with Email