Gold retreated as the dollar traded near a five-year high before a European Central Bank meeting today that may give indications on further stimulus.
The Bloomberg Dollar Spot Index was little changed before data due tomorrow thats forecast to show U.S. jobs growth and amid speculation ECB policy makers will signal more stimulus. President Mario Draghi said last month they are open to buying a wide variety of assets.
The greenback has strengthened as the Federal Reserve considers raising borrowing costs while other central banks take steps to spur growth. A stronger dollar and higher U.S. interest rates reduce golds allure because the metal generally offers investors returns only through price gains.
Gold for February delivery fell 0.5 percent to $1,202.20 an ounce by 7:18 a.m. on the Comex in New York. Bullion for immediate delivery declined 0.6 percent to $1,202.25 in London, according to Bloomberg generic pricing.
Source : Bloomberg