Gold price in euros to continue climbing

The gold price shed nearly 3% for a time last Friday to reach $1,164 per troy ounce, thus hitting a three-month low.

This was due to the significantly appreciating US dollar which drove the euro to 1.08 EUR-USD, its lowest level since September 2003 on the back of a better than expected February labour market report in the US. 

Yields on tenyear US Treasuries climbed to their highest level in almost 2½ months because the good US economic figures led market participants to expect the Fed to raise interest rates, which triggered the gold price slide.
 
This was accompanied by renewed outflows from the gold ETFs of nearly five tons, and speculative financial investors are also continuing to withdraw from gold.
 
Commerzbank notes in a report on Monday:

• We expect the gold price in euros to continue climbing. It would appear that the markets are still unable to ignore the Greek situation according to media reports at the weekend, the country's financial state is evidently more precarious than previously assumed, meaning that Greece could require fresh funds sooner than anticipated.
• What is more, the ECB will today begin purchasing government bonds and other securities initially worth a total of €60 billion per month.