Gold awaits ECB

21 July, 2017

The gold price is under pressure today as the market awaits the latest interest rate decision from the European central bank followed by a monetary press conference. Although no changes are expected, al ears will be on the following statement from ECB president Mario Draghi for clues of the central bank’s future movements.

No changes in rates are expected but the market is expecting a bullish tone from the Draghi and many believe he will set the stage for an interest rate hike in the nearest future which would be negative for gold as it is not an interest baring investment,

“We expect the ECB to be very subtle in their approach and the main agenda for them would be to reinforce their forward guidance. What we do want to hear from the ECB is that the policy members have discussed the topic of tapering,” said Naeem Aslam, chief market analyst at ThinkMarkets.

Another reason that gold has been under pressure over the last few trading sessions is the rebound in the US dollar which also caused a selloff in the precious metal.

There is a round of solid economic data due out of the US later today and this may help to determine gold’s direction as we head into the weekend,

“Although the ECB event is an important factor today, we do think the main denominator which matters the most is the dollar here,” said Aslam. “The weakness in the unemployment claims and Philly Fed manufacturing index could resume the selloff in the dollar and that would push the yellow metal higher.” Mr Aslam added.


Source link  
Oil surges on conflict concerns

The oil price has continued to rise in today’s trading session after yesterday’s gains on the back of attacks on two oil tankers in the Gulf of Oman...

Gold need to hold this level

The gold price is now trading at its lowest level since the start of the year and is now consolidating around the $1275 mark and according to one...

Gold faces key moment

The gold price has remained above the $1300 mark in today's trading session after breaking this important level yesterday and today's outcome...


US dollar down on dovish Fed

As predicted yesterday, the Fed kept interest rates on hold but the following monetary statement was much more dovish than analysts had predicted...

Gold needs some big news

The gold price is under further pressure in today's trading session as investors ponder the chances of another rate hike from the US Federal Reserve after the release...

Good news for the precious metal

Gold just got another reason to cheer after the latst minutes meeting from the US Federal reserve where the tone left many analysts predicting that...


Gold to stay above $1300

The gold price has recovered strongly over the past 3 trading sessions after coming perilously close to touching the $1300 mark and...

Oil price hinges on trade talks

Oil is down once again in today's trading session as investors and the market alike remain divided on the future direction of the price with a lot...

Oil needs Opec cuts

The latest tumble in the oil price has now reached gigantic levels, almost equaling the declines reached during the global financial crisis and according to some analysts, we may...

  


Share it on:   or