Gold Rate Slip 3-week Low After the ECB’s Decision

Gold fell to a three-week low as the dollar rose against the euro after the European Central Bank said it would extend its bond buying program.

The ECB also decided to reduce the value of its bond purchases, a move widely expected and taken into account in gold and dollar prices. The decision to extend the bond purchase program ended the EUR / USD rally.

European equity markets rallied after the decision as investors began to consider future interest rate increases, moving away from safe haven gold and bonds to buy stocks and other risky assets.

The rise in the US currency makes dollar-denominated gold more expensive for non-US investors.

Spot gold fell 0.7 percent to $ 1267.61 an ounce, having hit its lowest level since October 6 at $ 1266.27.

US gold futures for December delivery fell $ 9.40, or 0.7 percent, to $ 1269.60 an ounce on settlement.

Among other precious metals, silver fell 0.9% to $ 16.76 an ounce after touching $ 16.72, its lowest since October 6.

Platinum fell 0.7% to $ 914 an ounce, while palladium rose 1.05% to $ 970.60 an ounce.

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