Gold Rises After ECB Meeting

September 7, 2017 Share Print 0

Gold was set to recoup its losses from a day earlier as the euro strengthened against the dollar in the wake of the European Central Bank meeting, boosting investment demand for the precious metal.

Gold for December delivery GCZ7, +1.02% rose $11.60, or 0.8%, to $1,350.60 an ounce, set to more than recoup the 0.4% loss it saw a day earlier. A settlement around this level would be highest since early September for a most-active contract, according to FactSet data. The SPDR Gold Shares exchange-traded fund GLD, +1.00% climbed 0.6%.

The euro EURUSD, +0.9231% rose firmly against the U.S. dollar following the ECB’s decision to leave interest rates unchanged. In a news conference, the central bank’s President Mario Draghi indicated that the long-awaited decision on how and when to taper the ECB’s asset purchases would likely come in October.

via MarketWatch

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Alfonso Esparza

Senior Currency Analyst at Market Pulse

Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.