Gold futures turned sharply lower Thursday morning after European Central Bank (ECB) President Mario Draghi backed off from earlier comments that the ECB would consider increasing the amount of bonds it would purchase to stem the tide of the sovereign debt crisis.
COMEX gold for February 2012 delivery – the most actively-traded contract – slid from near $1,745 to as low as $1,711.70 per ounce. The drop in gold coincided with weakness in the euro currency, which fell 0.6% to 1.3327 against the U.S. dollar.
Although the ECB cut its benchmark interest rate by 25 basis points to 1.0% – as expected – speculation had arisen that the central bank would assume a more aggressive stance by signalling plans to expand its purchases of sovereign debt. However, Draghi presented a considerably less aggressive stance at his press conference following the ECB’s monthly monetary policy meeting.
U.S. equity market futures also headed south as the dollar rallied, with the S&P 500 contract retreating 0.9% to 1,246.75.
A live webcast of the press conference is available at the ECB’s website:
Aurizon Mines Advances Duvay Gold Project
- The current field operations at Duvay are centered around a mini-bulk sampling program and drilling
- The first two pit sample concentrates have been shipped to an independent laboratory for analysis by fire assay; processing of the third mini-bulk sample has commenced
- Results from the first 13 hole drill program included the intersection of 83.19 grams per tonne of gold over 1.0 meters.
