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Gold continued to decline for the eight consecutive day and is trading at 3-month lows as a stronger U.S. dollar weighs - with the euro trading at 12-year lows and racing toward a record quarterly drop. Better-than-expected U.S. jobs data reported last Friday added to expectations that the FED will hike interest rates rather sooner than later sending the precious metal down. A U.S. rate hike is now expected to happen possibly as soon as June. Physical demand for bullion could not support the price of gold.
A stronger U.S. dollar and the prospect for higher U.S. rates recently weighed on the precious metal as the precious metal is dollar-denominated and not yield-bearing.
Continuing uncertainty over Greece could not support the price of gold Continuing uncertainty over Greece weighs on the markets. On Monday ECB president Mario Draghi urged Greek officials to let return Eurozone-representatives to Greece in order to examine the government's books as a precondition for further financial aid. Greece agreed on allowing experts from the ECB and IMF to start their work today. Yesterday German Finance Minister Wolfgang Schäuble said that Greek officials must stop wasting time and work on the planned reforms.
Gold is currently quoted at USD1,156.80, +0,40% a troy ounce. On Thursday the 22nd of January gold reached a five-month high at USD1,307.40. Yesterday bullion traded as low as USD1,155.00.
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