ECB Cuts Benchmark Interest Rate

The ECB has cut its benchmark interest rate from 0.05 to ZERO as part of a extensive program to help the failing European economy. Also announced, the ECB will increase it quantitative easing program from 60 bn Euro a month to 80 bn Euro a month.

They also decided to cut the bank deposit rate from minus 0.3 pct. to minus 0.4 percent which costs the banks more to deposit cash with the central bank.

At the time of this report we see the Euro hitting a low of 1.0823 and the dollar index up almost one big figure at 98.25.

The stronger dollar hurting the price of gold this morning as we witness red numbers for the third day in a row. Surprisingly, we see another increase in the Gold overnight ETF holdings now standing at 56.7 million ounces.

Gold trading above $1,250 level after European sellers early this morning took gold in the April contract
to $1,237.50. Technical support level now at $1,246.00. In my opinion we must hold this level in order
to see Gold continue its upside momentum.

Have a wonderful Thursday.

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