Gold drops as Draghi warns eurozone economy still weak
Gold prices fell on Friday after European Central Bank President Mario Draghi warned that the eurozone economy won’t see noted recovery until closer to the end of the year.
On the Comex division of the New York Mercantile Exchange, gold futures for April delivery were down 0.24% at USD1,667.35 a troy ounce in U.S. trading on Friday, up from a session low of USD1,665.95 and down from a high of USD1,674.15 a troy ounce.
Gold futures were likely to test support USD1,664.05 a troy ounce, Thursday’s low, and resistance at USD1,683.85, Thursday’s high.
On Thursday, ECB President Draghi warned that economic weakness would stick around during the early part of 2013 and added recovery would kick in later”in the year, which weighed on the euro against the dollar, often a recipe for falling gold prices.