by Jan Skoyles, TheRealAsset.co.uk
Following a weak Euro, thanks to weaker-than-expected European data, gold is down again this morning having hit a three-week low ($1,408.24) in the early hours.
European data was a mixed bag yesterday, whilst the German ZEW Index was 0.1 higher than in April, at 36.4 it was still lower than the expected 39.5 and 48.5 points in March. The Euro fell to a six-week low against the dollar in response. Industrial output in March, for the Eurozone region, saw its biggest jump since July 2011. Analysts believe this is down to cold weather boosting energy use and production. Eurozone GDP is expected to have contracted by 0.2% in Q1.
It seems to be the same old story with gold at the moment; continued ETF outflows, strong US dollar index and mixed economic data are proving bearish for the yellow metal, whilst physical buying and further rumours of bank easing provide price support.
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