• Gold prices fell on Thursday as the U.S. dollar bounced from a near three-week low against the euro after European Central Bank President Mario Draghi signaled that any policy normalization in the euro zone would be very gradual.
• The euro forfeited early gains against the dollar to decline after Draghi said monetary policy would remain "reactive" and measures of underlying inflation were still subdued.
• Spot gold was down 0.4 percent at $1,320.67 per ounce by 1:34 p.m. EST (1834 GMT). It touched a one-week high of $1,340.42 on Wednesday before closing 0.6 percent lower. U.S. gold futures for April delivery settled down $5.90, or 0.4 percent, at $1,321.70 per ounce.
• "The stronger dollar is definitely a headwind for gold," said Walter Pehowich, executive vice president of investment services at Dillon Gage Metals. "Once it broke above the 90 level (vs the dollar index), gold came under significant pressure."
• European and U.S. stocks rose as traders took a break from worrying about a potential global trade war and focused on the ECB's plans to end its 2.5 trillion euro stimulus program.
• "Investors are watching to see if there are any hints that the ECB is winding down their quantitative easing," said Chris Gaffney, president of world markets at EverBank. "If they do that, you would see that strengthen the euro a bit."
• Draghi leveled pointed criticism of U.S. President Donald Trump's plans for more trade tariffs. "If you put tariffs against (those) who are your allies, one wonders who the enemies are," he said.
• Trump will sign a proclamation establishing the tariffs during a ceremony scheduled for 8:30 p.m. EST, (2030 GMT), a source familiar with the situation said.
• "Should tariff concerns remain in focus, gold should once again find its feet," ANZ said in a note.
• Traders are also awaiting Friday's non-farm payrolls data for February, a key barometer of the U.S. economy, for further clues on the pace of Federal Reserve rate increases.
• Technically, April gold futures prices closed nearer the session low again today. The gold bulls and bears are back on a level overall near-term technical playing field. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,350.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,300.00. First resistance is seen at today’s high of $1,329.80 and then at $1,335.00. First support is seen at this week’s low of $1,318.30 and then at $1,309.00. Wyckoff's Market Rating: 5.0
• Silver lost 0.1 percent at $16.48 an ounce, while platinum dropped 0.7 percent to $945.74 after touching its weakest since Jan. 4 at $941.
• Palladium was up 0.4 percent at $972.50 per ounce after dropping to its lowest since Feb. 9 at $961.55 on Wednesday.
Reference: Reuters, Kitco
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