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.

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