Spot Bullion was last at 1,061.20-1,061.50 Dollar per ounce, down $1.90 from Thursday’s close. Trading ranged at $1,060.20-1,065 so far.
After hitting a low of 1,047 Dollar on Thursday, the gold price had recovered to trade briefly at $1,065 during the United State session as the USD fell against major currencies after stimulus measures announced by the European Central Bank (ECB) disappointed.
The USD index had dropped to a low of 97.75 on Friday from a 13-year high of 100.51 on Wednesday. It was last at 98.04, 0.04% up from the previous day’s close.
On Thursday, the ECB – in response to slow growth and low inflation – lowered its interest rate by 10 basis points to -0.30 percent – effective 9 Dec. It also extended its bond-buying program to March 2017.
“Unfortunately markets wanted more, in the form of more monthly purchases (which was cultivate at 60 billion euro) and an even larger cut in the deposit rate. The ECB fell short in providing stronger forward instruction too, which disappointed some,” said ANZ Research in a report on Friday morning.
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