AGE Daily Gold Update

AGE Daily Gold Update presents a recap on today's action in the precious metals markets. View archives.

3/7/2019: Gold dips on ECB outlook

Source: Bill Musgrave, American Gold Exchange

Austin — Gold dipped 0.1% to close just above $1,286 after the ECB downgraded its forecast for the Eurozone, boosting the dollar and pressuring alternative stores of value.

The European Central Bank slashed its 2019 forecast for Eurozone growth from 1.7% to 1.1% and said ultralow interest rates will remain in effect until 2020. The inflation forecast was also cut slightly to 1.6%.

The dollar rallied more than 0.8% and the euro tumbled 1.4% as traders migrated to safer havens. A stronger dollar pressures gold and other commodities by making them more expensive overseas.

Gold's losses were minimized by safe-haven inflows flows despite the stronger as stocks tumbled on the ECB news. The Dow lost 0.8% and the Global Dow 1% as worries about slowing growth worldwide propelled risk-off sentiment.

The other precious metals also fell, with silver sliding 0.3% while platinum and palladium dropped 1.3% and 0.3%, respectively.

At the Comex close: April gold dipped $1.50 to $1,286.10; May silver slid 5 cents to $15.04; April platinum dropped $11 to $817.10; and June palladium shed $4 to $1,482.40 an ounce.