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.
