• Gold fell to a nearly three-week low on Thursday as the dollar gained against the euro after the European Central Bank said it would extend the lifespan of its bond-buying program.
• The bank also decided to cut back bond purchases, a widely expected move that was factored into gold prices and the dollar, and the extension of the bond-buying program took the wind out of the euro's rally against the dollar .
• European stock markets gained following the decision as investors started to price out future rate increases, moving away from safe-haven gold and bonds and into stocks and other assets perceived as risky.
• "Stocks are at extremely high levels in the U.S., but I think Europe is going to start playing catch-up," said Forex.com analyst Fawad Razaqzada. "I'm bearish on gold while we remain below $1,300."
• Spot gold was down 0.7 percent at $1,267.61 an ounce by 2:10 p.m. EDT (1810 GMT) after touching $1,266.27, its lowest since Oct. 6. U.S. gold futures for December delivery settled down $9.40, or 0.7 percent, at $1,269.60 per ounce.
• Also weighing on gold and boosting the dollar was fresh speculation that the next U.S. Federal Reserve chair could be a policy hawk following reports that current Chair Janet Yellen is out of the running.
• On Tuesday, U.S. President Donald Trump polled Republicans on whether they would prefer Stanford University economist John Taylor or Fed Governor Jerome Powell for the job. More senators preferred Taylor.
• Taylor would be more likely to raise interest rates, said John Lawrence, senior trader at Heraeus Precious Metals in New York.
• "If Yellen is out of the race, that takes out some of the dovish nature," Lawrence said. "The dollar is stronger."
• Gold is likely to flatline for another year in 2018 as rising U.S. interest rates clip momentum, a Reuters poll showed on Thursday, while silver forecasts were cut again after the metal lagged forecasts in the third quarter.
• Silver dropped 0.9 percent to $16.76 an ounce after touching $16.72, its lowest since Oct. 6.
• Platinum fell 0.7 percent to $914 an ounce, while palladium climbed 1.05 percent to $970.60 an ounce.
Reference: Reuters
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