Equityworld Futures : Gold Prices Slump Depressed Strengthening US Dollar After ECB Decision

Equityworld Futures-Gold prices retreat in late trade on Friday morning (09/12) after the US dollar rebounded triggered by the European Central Bank's decision to extend the asset purchase monthly until December although at a lower monthly rate.
LLG Spot gold prices fell 0.2 percent to $ 1,171.16 per ounce.
US gold futures for February delivery closed at $ 1,172.40 per ounce.
Gold, which is slightly firmer before the ECB statement, fell as the market focused on the central bank to extend its quantitative easing program by the end of 2017, exceeding the six-month extension is expected.
Investors were distressed by the unexpected decision of the ECB to cut the purchase of assets of 60 billion euros ($ 64 billion) a month from April next year of € 80 billion now.
The dollar index moved into positive territory following the decision of the ECB, made of gold denominated in dollars more expensive for holders of other currencies.
The euro gave up all its gains against the dollar after ECB move, falling more than 1 percent to a low of 106.22.

Equityworld Futures : Wall Street Print New Record High
Also weighing on gold was increased expectations the US Federal Reserve will raise interest rates at its policy meeting next week, due to higher US interest rates increase the opportunity cost of holding gold.
Interest rate futures traders see 97 percent chance the Fed will raise rates at its policy meeting (FOMC) next Tuesday and Wednesday, FedWatch Program CME Group show.
Owners SPDR Gold Trust, the world's largest gold-backed gold exchange-traded fund (ETF), fell 0.72 percent to 863.67 tonnes on Wednesday from the previous day. Ownership has fallen more than 8 percent since November.
Silver fell 0.8 percent to $ 16.96 per ounce after rising more than 2 percent in the previous session.
Platinum rose 0.6 percent to $ 942, while palladium fell 1.6 percent to $ 721 an ounce after touching a low $ 713.97, the weakest since Nov. 18.
Analyst Vibiz Research Center estimates that the price of gold for the next trade will move weakened by the strengthening US dollar and the strengthening of Wall Street. The gold price is expected to move in the range of $ 1,169- $ 1.167 Support, but if the price rises will move in the range of $ 1,173- $ 1.175 Resistance.


"Equityworld Futures"

Posted in: emas,Equityworld Futures,gold