Europe is the focus of investors’ attention today with the ECB meeting – where no interest movements are expected – and the press conference which will follow it. From there, investors will try to get any signal on the ECB’s next monetary policy and if the bank will try to mitigate against the Euro’s strength. Indeed, in the last few weeks we have seen a remarkable recovery of the eurozone currency. Any dovish comments by Christine Lagarde will have a bearish impact on the Euro, and this would once again be supportive for gold. Central banks’ activity and the hyper expensive monetary policies of the last few months have been one of the major market movers pulling up the gold price.
Technically, the main trend for bullion remains positive, while in the medium-term the price is in a lateral range between $1,860 and $2,070. We would have a first positive signal if bullion can recover the psychological threshold of $2,000, confirming the huge interest for this asset.
Chief analyst at ActivTrades and technical analyst for Italian newspaper 'La Stampa'. Carlo Alberto provides regular commentary for UK outlets including the BBC, Telegraph, the Independent Bloomberg & Reuters. He is also a weekly commentator for CNBC Italy and a columnist for La Stampa. He worked for Bloomberg as their Equity Research Fundamental Analyst before joining brokerage ActivTrades in 2011 to specialize in currency markets and commodities. In 2014 he published a 250-pages book on gold and the gold market, followed in 2018 by a new updated edition.
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© 2019 High Leverage FX - All Rights Reserved.