LONDON: Gold prices slipped in Europe for a fourth successive session Thursday as the dollar firmed versus the euro and risk appetite improved after a raft of better-than-expected US data.
Spot gold was bid at $1,373.00 an ounce at 1222 GMT, against $1,377.65 late in New York on Wednesday. US gold futures for February delivery fell 60 cents to $1,373.10.
A string of robust US data have driven the dollar higher on expectations the United States may recover faster than other major economies. The numbers have raised expectations that a key payrolls report on Friday will be positive.
The well-received data has pressured gold via the dollar, undermined the metal’s appeal as a haven from risk and raised the prospect of tighter monetary policy.
Although the appetite for gold as a safe store of value is likely to remain supported by concerns over euro zone debt levels, the US deficit and potentially strong inflation in emerging markets, the precious metal could be at risk of extending its short-term correction.
"Market sentiment is shaken, and next week’s rebalancing of the commodity index looms large; how much is already priced in is up for debate," said UBS in a note.
"Silver will be one of the biggest losers in the index rebalancing, but commodity contagion has caused the other precious metals to suffer."
– Reuters
