Gold fell on Friday as hints of more monetary stimulus from the European Central Bank weighed on the euro and pushed stocks higher, denting appetite for alternative assets.
- ECB signals more policy easing, weakening euro.
- Stocks climb, oil rebounds strongly.
- China, India physical gold demand slow.
Benchmark Brent crude futures , which had fueled risk aversion with a tumble to 12-year lows, closed out a volatile week by soaring 9 percent on Friday as traders cashed in on record short positions.
That fed into stronger appetite for assets viewed as higher risk, such as equities and industrial commodities, and weighed on gold.
Even with the day’s loss, gold was poised to end the week higher. Bullion has benefited from the risk aversion that hurt stocks and crude oil this month, though slow physical demand from major consumers China and India kept a lid on price gains.
Gold premiums in China rose only slightly this week and sellers in India offered discounts given poor demand.
Holdings of the world’s largest gold-backed exchange-traded fund, New York-listed SPDR Gold Shares GLD , rose a further 1.8 tonnes on Thursday, data from the fund showed. That brought its inflow for the week to 4.2 tonnes.
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