logo-loader

Gold lower ahead of ECB meeting tomorrow

With gold close to its 200-day moving average of US$1,175, trading could be quiet ahead of the ECB’s announcement tomorrow

gold_nuggets,_sized_5627a475c13d7.png
Gold was trading US$10 lower at US$1,165 today.

Gold along with the other precious metals slipped back this afternoon as investors await the outcome of the European Central Bank (ECB) policy meeting tomorrow.

With gold close to its 200-day moving average of US$1,175, trading could be quiet ahead of the ECB’s announcement and the Federal Open Market Committee meeting next week.

The ECB is unlikely to adjust its €60bn per month asset purchase programme in October, but investors believe it may hint at more stimulus later this year.

A member of the ECB Governing Council, Christian Noyer, said there was no need to change the current level of quantitative easing.

FXTM Research Analyst Lukman Otunuga, said: “After September’s deflationary CPI reading of -0.1%, the ECB has been provided a compelling case to come forward to provide additional stimulus measures in the near future.”

He added that ECB president Mario Draghi may be expected to reiterate his dovish mantra on the health of the Euro.

If the ECB does look at further quantitative easing measures, it will weaken the euro pushing the dollar higher, impacting the gold price.

Elwin de Groot Senior Eurozone Strategist at Rabobank said: “We stick to our view that an expansion/extension of the asset purchase program is the most likely next step by the ECB, but we believe this will take place in December at the earliest.”

Gold was trading US$10 lower at US$1,165 today.

Elsewhere, silver eased 1.7% to US$15.65 while platinum lost 1.6% to US$1,003.

Major Movers

Randgold Resources down 62p to 4,461p

Fresnillo down 12p to 721p

Anglo American down 27p to 595p

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Buds & Duds: Cannabis stocks green across the board; Curaleaf joins fellow...

The North American Marijuana Index, which tracks the top cannabis stocks in the US and Canada, grew 4.6% at 114.8 points. Elsewhere, the OTCQX Cannabis gained 6% at 466.7 points. Buds today are Curaleaf Holdings Inc (CSE:CURA) (OTCMKTS:CURLF), Trulieve Cannabis Corp...

9 hours, 11 minutes ago

2 min read