Gold Falls to Six-Week Low on Draghi Deflation Warning
This article is for subscribers only.
Gold futures fell below $1,700 an ounce to a six-week low as European Central Bank President Mario Draghi said his plan to buy government bonds “will not lead to inflation.”
Draghi said in Berlin that “in our assessment, the greater risk to price stability is currently falling prices in some euro-area countries.” Gold rallied this year as the Federal Reserve expanded economic-stimulus measures. The central bank said today that unemployment remains elevated as it maintains $40 billion in monthly purchases of mortgage-backed securities.