Gold price in euro terms falls to 2-week low after EU inflation data

Gold in US dollars has neared the $1,200 per troy ounce mark once again, though in euro terms the gold price found itself under significant pressure and fell to a two-week low of below €1,070 per troy ounce. It is continuing to trade at this level this morning. This is because the Eurozone core inflation rate, excluding energy and food, was 0.9% in May, constituting a much higher year-on-year increase than anticipated and causing yields on ten-year German government bonds to surge and the euro to appreciate sharply. 

Gold ETFs recorded outflows of 5.4 tons yesterday, their highest daily outflow in two weeks, meaning that there have now been net outflows since the beginning of the year, notes Commerzbank.