Commerzbank: Ongoing devaluation race between currencies likely to contribute to solid demand for gold

Quotes from Commerzbank

• The gold price is trading at around the $1,200 per troy ounce mark this morning and is thus largely defying the very firm US dollar.
• The US dollar appreciated yesterday to its highest level against the euro since September 2003 and is continuing to rise today. This means that gold in euro terms is gaining and is trading at just shy of €1,090 per troy ounce this morning.
• The current weakness of the euro could be related to today's ECB meeting - the first since the programme to purchase government bonds and other securities (QE) was announced. The market is hoping to hear details of the QE programme that is likely to commence in the next few days.