Gold continued to decline and is trading at 15-week lows as a stronger U.S. dollar weighs. Better-than-expected U.S. jobs data reported last Friday added to expectations that the FED will hike interest rates rather sooner than later sending the precious metal down. A U.S. rate hike is now expected to happen possibly as soon as June.
A stronger U.S. dollar and the prospect for higher U.S. rates recently weighed on the precious metal as the precious metal is dollar-denominated and not yield-bearing.
Continuing uncertainty over Greece could not support the price of gold. The country remains in the focus as the proposed list of measures is far from complete, the head of Eurogroup Jeroen Dijsselbloem said on Sunday. On Monday ECB president Mario Draghi urged Greek officials to let return Eurozone-representatives to Greece in order to examine the government's books as a precondition for further financial aid. Greece agreed on allowing experts from the ECB and IMF to start their work on Wednesday.
Gold is currently quoted at USD1,161.50, 0,46% a troy ounce. On Thursday the 22nd of January gold reached a five-month high at USD1,307.40.