2019.03.0714:40:00UTC+00Gold Futures End Lower As Dollar Moves Up

After snapping a seven-day losing streak on the previous session, gold futures turned easy on Thursday, as the dollar gained in strength and equities suffered losses after the European Central Bank slashed its forecast for the eurozone economy, raising concerns about global growth once again.

The dollar index rose to 97.50, gaining about 0.65%, scoring gains against most major currencies.

Gold futures for April ended down $1.50, or 0.1%, at $1,286.10 an ounce.

On Wednesday, gold futures for April settled at $1,287.60 an ounce, down $2.90, or 0.2%.

Silver futures for May ended at $15.040 an ounce, down $0.045 from previous close, while Copper futures for May ended down $0.0080, at $2.9105 per pound.

The European Central Bank today slashed its economic growth forecast, citing lingering, mainly external uncertainties.

The ECB left its main refi rate at a record low 0% and the deposit rate at -0.40%, whild holding the marginal lending facility rate at 0.25%.

ECB said it now expects eurozone interest rates to remain at the current level at least till the end of this year.

The central bank cut eurozone growth outlook for this year to 1.1% from 1.7%, and the outlook for next year to 1.6% from 1.7%.

The risks surrounding the euro area growth outlook are still tilted to the downside, on account of the persistence of uncertainties related to geopolitical factors, the threat of protectionism and vulnerabilities in emerging markets, the ECB said.

"While there are signs that some of the idiosyncratic domestic factors dampening growth are starting to fade, the weakening in economic data points to a sizeable moderation in the pace of the economic expansion that will extend into the current year," said ECB President Mario Draghi.

He added, "The persistence of uncertainties related to geopolitical factors, the threat of protectionism and vulnerabilities in emerging markets appears to be leaving marks on economic sentiment."

Reflecting the concerns about the economic outlook, the ECB announced steps to preserve favorable bank lending conditions and the smooth transmission of monetary policy. The bank said a new series of quarterly targeted longer-term refinancing operations will be launched in September 2019. The loans will have maturity period of two years.

In U.S. economic news, the Labor Department's report showed a modest decrease in first-time claims for U.S. unemployment benefits in the week ended March 2nd.

The report said initial jobless claims edged down to 223,000, a decrease of 3,000 from the previous week's revised level of 226,000. Economists had expected jobless claims to come in unchanged compared to the 225,000 originally reported for the previous week.