Daily Gold Update

Source: Bill Musgrave, American Gold Exchange

Austin— Gold slid 0.9% to close at a one-week low above $1,167 as the dollar stabilized ahead of tomorrow's meeting of the European Central Bank, which may open the door to deeper quantitative easing in the Eurozone.

The dollar rose against major rivals, trading flat with the euro while pushing to a nine-day high versus the yen, as traders await details about the whether the ECB plans to loosen further monetary policy. A stronger dollar weighs on gold and other commodities denominated in it for international trade by making them more expensive to users of other currencies.

ECB President Mario Draghi has hinted at expanding QE at the ECB meeting that begins tomorrow. However, data released this week showing regional banks loosening their lending standards, thereby adding liquidity to the economy, may obviate the immediate need for deeper easing. The currency devaluation caused by QE is a main reason that gold priced in euros has gained 7% in the past twelve months.

The other precious metals fell harder than gold, with silver dropping 1.3% while platinum and palladium lost 1.3% and 2.6%, respectively.

At the Comex close: December gold slid $10.40 to $1,167.10; December silver dropped 21 cents to $15.71; January platinum lost $13 to $1,007.10; and December palladium fell $17.70 to $677.15 an ounce.