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MTECHTIPS:-Gold drops to near 1-week low ahead of ECB decision
Gold futures fell close to a one-week low in European trade on Thursday, as the dollar strengthened against the euro amid expectations the European Central Bank will unveil fresh stimulus measures at the conclusion of its policy meeting later in the day. The euro fell to 1.0963 against the greenback after climbing to 1.1034 on Wednesday as the ECB is widely expected to cut rates further into negative territory at the conclusion of its monetary policy review on Thursday. The bank is also expected to enlarge its asset purchasing program in a bid to combat persistently low levels of inflation in the euro area. The dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.25% to 97.43 during European morning hours. A stronger U.S. dollar usually weighs on gold, as it dampens the metal’s appeal as an alternative asset and makes dollar-priced commodities more expensive for holders of other currencies. Gold for April delivery on the Comex division of the New York Mercantile Exchange shed $10.80, or 0.86%, to trade at $1,246.60 a troy ounce by 08:05GMT, or 3:05AM ET, after falling to a session low of $1,245.70. A day earlier, gold shed $5.50, or 0.44%, as the metal’s safe-haven appeal was dented amid a recovery in oil prices and global equity markets.
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