Spot gold prices are trading marginally higher Friday after prices finally came under pressure during the previous session, after ECB
President Mario Draghi disappointed markets at yesterday’s much anticipated ECB press conference. Bulls of risk assets headed for the exits after financial markets had priced in some sort of immediate stimulus measures from the ECB after previous comments from Draghi had fuelled the market with expectations, particularly gold. Spot gold had previously advanced to $1615 just before the ECB conference, but quickly reversed lower to around $1588 when it became apparent that the ECB officials had just been jawboning the financial markets. Brokers report hardly any activity from the early bird gold desks this morning, but pointed out that they still expect prices to remain in a holding pattern until the next FOMC meeting in Sept. A quiet Asian session has seen gold hold at lows of $1584.08 and tentatively edge higher to intra-day highs of $1591.93 where some shorts were taken off by market makers yesterday.
EasyForexNews Research Team