Gold exchange traded funds were little changed Friday morning but were on track for a steep weekly decline as tensions over Europe’s debt crisis relaxed a bit.
In a surprise move Thursday, the European Central Bank said it was working with other central banks to lend U.S. dollars to financial institutions that need liquidity.
Leaders in France and Germany have also vowed to back Greece’s ongoing membership in the Eurozone. [Europe ETFs Rise After Leaders Soothe Nerves Over Greece]
Officials are “looking for a solution and in the short-term the market may react to that,” Afshin Nabavi, a senior vice president at bullion refiner MKS Finance, told Bloomberg. “It would be a healthy move for the market if we see a correction. I don’t see miracles happening that quickly” and gold may rebound toward $2,000, he said.
SPDR Gold Shares (NYSEArca: GLD) was flat at last check Friday. The gold ETF was down 3.5% for the week heading into the session.