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.