IB:Gold Prices Ease on Rising Dollar, Slowing Chinese Economy
Gold prices eased Thursday as a rising dollar, boosted by signs the world's No. 2 economy is slowing, offset steady Asian and central bank demand for the yellow metal as well as safe-haven buying by Euro-wary investors.
Chinese customs data showed export growth falling last month more than expected, while import growth also slowed.
That lifted the dollar, which also got a boost from a European Central Bank report warning about the possibility that the region's bond holders should brace for losses as banks tally the damage from a Greek default.
That hammered the euro, already burdened by a host of other related factors that currency buyers are closely monitoring.
"We need to see recognition that France and Germany are on the same page, and the recognition that officials are looking for a pan-European solution, rather than national ones. Also, the rescue fund has to be large enough to be able cope with the scale of the problem," Jeremy Stretch, currency strategist at CIBC.
