Gold falls as European outlook improves

<p>Gold values have retreated as the European economic outlook improves.</p>

Gold fell from prolonged highs in trading this morning (January 24th), as the precious metal loses its appeal in light of an improved European outlook.

The currency-denominated commodity historically moves in the opposite direction of benchmark currencies, so while economies are gaining strength, the precious metal tends to decline.

This week, there have been lots of reasons to be hopeful about Europe, with the eurozone and European Union's (EU) finance ministers gathering to discuss policy leading to the implementation of the financial transactions tax in nine member nations.

Furthermore, Eurostat revealed that government borrowing in the EU and eurozone is nearly stable, holding at 85.1 per cent and 90 per cent respectively.

At 11:45 GMT, Forex Gold futures retreated by 0.9 per cent to $1677.00 per ounce, sliding from $1690.25 per ounce last night.

Oil also slipped, with Brent futures dipping by 0.2 per cent to $112.58 per barrel.

Find out about commodities trading and learn CFD strategies at City Index. 

Build your confidence risk free
Join our live webinars for the latest analysis and trading ideas. Register now

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.