Learning-investment09.blogspot.com - Gold
prices traded lower on Wednesday (9/3) as equities rose more than 1 percent as
the impact of the continued expectations of monetary easing will be announced
at the European Central Bank meeting on Thursday which gives the selling pressure
on the Euro, so the US Dollar strengthened quite sharply against the Euro.
Strengthening
greenback prompted market participants to profit-taking in gold, given the
price of the precious metal has rallied to reach the highest level within the
last 13 months or since February 2015 ago.
Euro
currency conditions throughout Wednesday, the dollar continued to weaken
against the euro has weakened even as much as 0:53 per cent throughout the day
wherein from 1.1009 opening position and are now at the level of 1.0952.
Currency pair EUR / USD also failed to break the resistance nearby at 1.1070
daily time frame so as to encourage Euro weakened against the greenback.
While
the outflow was also seen in the Exchange Traded Fund based gold where the
number of gold holdings declined by 2.4 tones on Tuesday, yesterday in which it
became the largest outflow of gold holdings in the period of 4 weeks.
Read also Recommended Price of Gold, Thursday, March 10, 2016 (By Jul Allens)
Investors
sold gold because they do not want to speculate further, especially ahead of
the ECB decision is expected to lower interest rates on deposits at least 0.1
percent in order to expand the asset purchase policy to enforce Euro zone
economic growth.
When
the news was revealed, gold traded at 1247.64 USD / troy ounce or fell as much
as 0.74 percent since the opening of the New York session or have weakened 1:28
percent so far this Wednesday.