Spot gold prices are trading around unchanged levels Thursday with market participants eagerly awaiting decisions from the Bank of England and European Central Bank. Despite a firmer showing from the USD in Asian traded hours this morning, gold prices edged their way to session highs of $1619.23 as speculators anticipate a rate cut from the ECB which may in turn provide a boost to the bullion’s appeal, although prices have already advanced over $66 from levels seen prior to last week’s EU summit conclusion. Traders in gold will also be scrutinising the US ADP employment report later today for some clues on Friday’s non-farm payroll report, although history does show that the ADP report cannot be relied upon for an accurate reading. Gold prices remain elevated in anticipation over a weak payrolls number, which will in turn apply more pressure to the Federal Reserve to unleash more QE on the market. The rally in gold, seen from last week, cannot be ignored and recent price action does suggest a weak payrolls number tomorrow could well be on the cards. Prices held at lows of $1613.57, now $1615.20.
EasyForexNews Research Team