Gold Prices Fall as Greece's Debt Worries Resurface

Gold futures traded lower on Thursday, as investors became anxious about Greece's ability to deal with its debt situation. The euro's decline and the downgrading of Deutsche Bank's ratings by Moody's Investor Service also contributed to the metal's pullback. Despite this, some traders believe that gold is still attractive due to ongoing concerns about the situation in Europe, particularly in Greece.

Key Takeaways:

• Gold prices fell by 0.88% to $1,132.60 an ounce in the March contract, while the most-active April contract slid by 0.89% to $1,133.10.
• The euro's decline to $1.3567, compared to $1.3703 late Wednesday, may have contributed to the metal's pullback.
• Leonard Kaplan, president of Prospector Asset Management, stated that the Greek problem is not going to go away, and people are selling the euro.
• Jon Nadler, senior analyst with Kitco Metals, noted that the current Greek government is facing the most challenging set of economic conditions in the country's recent history.
• Frank Lesh, broker and futures analyst with FuturePath Trading, stated that there is a "legion" of traders taking positions inverse to the dollar, hurting the metal on Thursday.
• The monthly U.S. jobs report, which is expected to show a fall of 75,000 non-farm payrolls, will have a significant impact on the dollar and gold prices.

Statistics:

• Gold prices fell by $10.10 to $1,132.60 an ounce in the March contract.
• The most-active April contract slid by $10.20 to $1,133.10.
• Silver prices lost 15.3 cents to $17.176 an ounce.
• The euro declined to $1.3567 from $1.3703 late Wednesday.
• Moody's Investor Service downgraded Deutsche Bank's ratings, highlighting continuing fiscal concerns in the euro zone.

Sources:

• Dow Jones Commodities News via Comtex
• Allen Sykora, Dow Jones Newswires; 541-318-8765; allen.sykora@dowjones.com
• Dow Jones & Company, Inc.