Yesterday’s ECB meeting went as investors forecast and failed to exceed expectations. New expansive measures seem to be ready, but Mario Draghi and his team are not yet launching them. For this reason, stock markets weakened while gold declined from $1,430 to $1,415/$1,420. But the main scenario still seems unchanged.
Investors are now counting down to the Fed’s meeting: most market players are confident that the US central bank will cut interest rates this time. Markets are also waiting for US GDP data later today. Traders are trying to predict how this data could impact the Fed’s decisions of next week. Any weakness would be seen as confirmation of the need for further rate cuts, with gold ready to continue, in this case, its rally.
Photo by Renan Kamikoga.
