Appreciation in US dollar and stock markets, along with rebound in oil prices led the gold prices to drop below the $1,100 per troy ounce at the end of this trading week. However, gold in euro terms touched a 2-week high of €1,017 per troy ounce yesterday. Further revisions were made to the gold ETF holdings which show total inflow of 38.4 tons since January(Bloomberg).

During a recent press conference, ECB President Draghi's statements strongly suggested that the monetary policy will be further eased in March as the current scenario has been deteriorating significantly. He said that the bank will do everything in this capacity to achieve the inflation target.

"Our economists believe that another interest rate cut is more likely than an increase in the volume of the monthly bond purchases. The further loosening of ECB monetary policy should benefit gold in euros above all." - Commerzbank.