On Thursday gold prices edged down. By 06:49 GMT spot gold fell by 0.3% to reach $1,687.74 per ounce, hitting a month low of $1,684.40 price from the previous session.
The yellow metal has been less bullish for about a month due to modestly stronger dollar. In addition, the European Central Bank policy forum is anxiously observed by the investors for latest data on the debt crisis in the Euro zone.
Today the head of Deutsche Bank metals research said that the price of gold in the near term is expected to stay in range through the upcoming year. At the same time, the debt crisis in the Euro Zone is still a major economic concern. Yet, it is possible gold prices to advance further due to expansionary measures expected to be taken by most central banks next year.
At an industry forum, the head of Deutsche Bank metals research said that the gold prices are most likely to keep their down rates till the end of 2012 with the current lack of monetary policy actions and eloquence. Even if the US lawmakers find a way to handle the fiscal cliff’s tax increases and spending cuts sooner, there would be a possibility of a slight jump in the gold prices. Yet, gold could reach $2,000 per ounce in 2013 if expansion measures are taken by the largest central banks in order to increase their balance sheets.
The European Central Bank meeting caused the euro to loosen its grab on the US dollar. A value which broke the seven-week high gauged in the previous session. The dollar index gained modestly as it applied more pressure on commodities which are dollar-based. This made them a bit more expensive for other currencies buyers.
