Spot gold prices are trading around unchanged levels Thursday as market participants in the precious metal turn their attention to the conclusion of today’s eagerly awaited ECB meeting, due at 1145GMT. Gold prices initially suffered a setback after last night’s highly anticipated FOMC announcement, where the US Federal Reserve decided to refrain from unleashing any new immediate stimulus measures to stabilise the faltering US economy, although many market participants noted the flavour of the door remaining firmly ajar for the next meeting due on Sept 12-13. A third round of large-scale government bond buying, dubbed quantitative easing (QE), remains a very firm possibility at the next meeting, with the Fed maybe deciding to hold back on this occasion after the recent extension of Operation Twist, coupled with the desire to observe more forthcoming US data over the coming weeks, particularly in the jobs section. Gold slipped to $1592 after the FOMC release before recovering to $1604. Prices have been in a very tight range so far this morning, with lows of $1599.10 and highs of $1603.80, last $1601.40.
EasyForexNews Research Team