Gold: Gold cuts down its losses following Euro gaining over USD

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Gold continued to revert losses as the dollar cut down its gains over the Euro following ECB governor’s speech that it is likely for the ECB’s monetary policy to become tightened possibly from the next month. Earlier in the day Gold dropped over 1% following the rise of the dollar against the Euro as a result of Merkel’s loss in the elections. Even so Gold remained under constant pressure as a result of the Middle East tension steadily evaporating and investors seeking the dollar.

The precious metal reached to a record high of $1,447 an ounce, last week as the violent incidents in the Middle East and North Africa as well as the debt concerns in the euro zone encouraged risk-averse buying of gold. Gold is currently traded at $1420.40 an ounce.