The European Central Bank said that it will extend its asset purchase program
Gold prices went lower on Friday, influenced by the recent policy decision of the European Central Bank. Also, the investors are now more interested in the Federal Reserve meeting next week.
The New York Mercantile Exchange, gold futures for the month of February (when they will be delivered), were at $1,170.35, down by 0.18%.
On Thursday, the February deliver contract ened at $1,172.40, down by 0.43%.
Futures found support after their 10-month low, and went at a high at $1,186.70.
The U.S. dollar was mildly supported after the European Central Banks' declaration on monthly policy made on Thursday.
The European Central Bank said that it will extend its asset purchase program with nine more months.
The ECB program was scheduled to end in March of 2017, and now it will offer 60 billion euros to December of 2018 and, if necessary, beyond.
More than that, European Central Bank left its interest rate unchanged at zero, a record low, keeping the result in like with the forecasts.
Meanwhile, USD found support after the U.S. Labor Department data's initial release. The release showed that jobless claims fell to 258,000, also keeping in line with expectations.
Usually, a stronger USD weighs on gold's prices, making the gold to dampen and go lower, while dollar-priced commodities have higher-costs for holders of other currencies.
Investors are now interested in the Federal Reserve's meeting next week, and hope for a new policy, even though rate hike expectations are more plausible.
On the other hand, silver futures for March of 2017 went down by 0.37%, to $17.032 per troy ounce, and copper futures for the same period went up to $2.645, by 0.72%.
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On Wednesday, Federal Reserve Chair Janet Yellen spoke about the interest rates and about the United States' economy
The gold prices dropped below $1.200