#news Daily Outlook for Gold Prices: Quotes from Commerzbank Corporates & Markets: -Gold has dropped to a new 4½-year low of $1,131 per troy ounce this morning in response to yesterdays ECB meeting which resulted in the euro falling sharply and hitting its lowest level against the US dollar for more than two years. According to ECB President Draghi, the ECBs balance sheet should return to its March 2012 level. In other words, it would need to increase by €1,000 billion. -In our opinion, the measures taken by the ECB so far are unlikely to be sufficient to ensure that the balance sheet rises by this amount. This increases the probability of broad-based government bond purchases (QE). The gold price could fall further today if the US labour market data due to be published this afternoon cause the US dollar to appreciate even more. -Institutional investors continue to withdraw from gold ETFs. Holdings in the gold ETFs tracked by Bloomberg were reduced by an additional 4.2 tons yesterday. Outflows since the beginning of the week total 14.4 tons, and cannot be offset by increased demand for coins and bars on the part of retail investors of late. -The CFTCs figures this evening are likely to show that selling via the futures market was primarily to blame for the decline in the gold price since the end of October, given that days of sharp price falls were accompanied by high volumes of trading on the COMEX. Anything other than a marked reduction in speculative net long positions would therefore come as quite a surprise. The material has been provided by InstaForex Company - instaforex.ws #forex #trading
Posted on: Fri, 07 Nov 2014 12:16:25 +0000
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