Gold’s three day winning run came to an end today after the latest ECB meeting where interest rates were left unchanged along with their quanitive easing program.
At 7.02pm (GMT) the gold price was trading at $1,266 slightly down from $1,268 in yesterday’s trading.
Although interest rates were left on hold by the ECB as expected, some analysts were surprised that the central bank also decided to leave their bond buying program unchanged which sent the US dollar higher against the Euro and in turn pressured the gold price which tends to move in the opposite direction of the Greenback.
Today aside, the precious metal is still 1 percent higher this over the past 3 days and may continue its upward trend later in the week over uncertainty from the US Federal Reserve.
“Gold received a welcome boost this week with the metal charging towards $1,270 as the combination of dollar weakness and slightly diminishing expectations over the Fed raising U.S. rates in December attracted bullish investors,” said Lukman Otunuga, an FXTM research analyst.
Some analysts such as Barnabas Gan, an analyst at Singapore's OCBC bank, see the uncertainty pushing gold much higher as investors are left guessing right up until the US presidential election on November the 8th,
"Gold rides on suspense and uncertainty and for the very reason we expect gold to touch about $1,300 by the end of the year," he said.
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