ECB, Fed & market indicators look set to further impact gold price
The gold price has slumped for the 7th day out of 8 as corporate debt and government bond yields rose ahead of the Federal Reserve’s announcement next week on interest rates.
This is the longest downward trend in just under a year. The last time a consecutive downward trend in the gold price occurred was in May, when there was a growing U.S. dollar index and a rise in market confidence, according to the CBOE Volatility Index.
In the gold futures market Mining.com noted that gold for delivery for April, which is an active contract on the Comex market in New York (23m oz traded), fell to its lowest point in five weeks at $1,199.00.
Bullionvault reported that the gold price has now slid 2.5% since Monday, while world stock markets held flat and commodities dipped on the back of a strong US Dollar.
In Europe, the Euro jumped up against the dollar after European Central Bank (ECB) chairman Mario Draghi made a statement affirming the status of the single currency and that it was ‘here to stay’, according to The Guardian. The ECB have made no changes to negative interest rates or quantitative easing policies, which currently amount to €80bn of government debt every month, although this is due to reduce to €60bn by April.
Ahead of today’s highly anticipated NFP (Non-farm Payrolls) announcement, sentiment for the gold price remains polarised, although positive economic data in combination with a rate hike could consolidate bearish sentiment. Currently SSI (Speculative Sentiment Index) figures read at +2.00, with 67% of traders long on gold prices.
In other news, a hoard of gold and silver worth $115,000, that was stolen last February in Everett, Washington State, has been found by Marysville and Everett police. According to Peninsuladailynews, the police department said it also found multiple ounces of heroin and methamphetamine at the residence when it was searched Feb. 28.
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