Gold Eases as Hopes for U.S. Monetary Stimulus Fade
Gold prices eased in Europe on Wednesday, extending the previous session’s losses, after Tuesday’s stronger-than-expected U.S. retail sales data dampened speculation for another round of monetary easing from the Federal Reserve.
Hopes that the European Central Bank could launch extraordinary measures to tackle the euro zone debt crisis and support its ailing economy kept the metal firmly underpinned near $1,600 an ounce, however.
Spot gold was down 0.1 percent at $1,596.00 an ounce at 0928 GMT. The precious metal has fallen 1.4 percent this week and is little better than flat on the year, as investors stay on the sidelines awaiting clearer signals on monetary policy.