Gold prices move lower but rebounded off support seen near the 10-day moving average at 1,275. The dovish ECB commentary, helped the dollar gain traction, paving the way for lower gold prices. Resistance on the yellow metal is seen near the weekly highs at 1,296. Momentum is neutral as the MACD (moving average convergence divergence) index prints in the black but the MACD histogram edged lower reflecting consolidation.
The ECB Left Rates Unchanged
The European Central Bank kept rates unchanged but dropped their easing bias as part of their forward guidance. The quantitative easing schedule was unchanged and said rates will remain at current levels”, rather than “current or lower levels”. The central bank maintains that it has the flexibility to alter the QE program “in terms of size and/or duration”, if the outlook becomes less favorable.
