The price of gold in negative territory this morning after the European Central Bank (ECB) announced the continuation of the bank’s asset – buying program.
The ECB asset purchasing program was due to end in March next year but the ECB said they will extend it to at least December 2017. The asset purchase plan is currently at 86 billion Euro and will be reduced to 60 billion Euros in April next year.
This came as a surprise to most economists that the ECB is extending their quantitative easing plan another nine months. After the announcement we saw the Euro Zone bond yields increase especially in Italy and Spain putting pressure on the price of gold over the pond.
In turn we see a stronger dollar index this morning off the news keeping a cap on any gold rally this morning.
Like any news item that effects the price of gold, we need to see how the market absorbs the information before taking on any position.
Have a wonderful Thursday.
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