Gold prices inched down on Thursday

European Central Bank’s meeting ahead

On Thursday, Gold edged down on prices with a steady dollar as the market awaits the important ECB’s meeting to be held later in the day. The market is looking for a clue on the ECB’s next policy and its stimulus program outlook.

Gold Statistics

Spot gold inched down by 0.2% and reached $1238.30 per ounce at 03:41 GMT. US Gold futures for delivery in August were 0.3% lower and reached to 1,237.70 per ounce. SPDR Gold Trust holdings, the world’s largest exchange traded fund backed by Gold saw a fall of 0.65%. It came to 816.13 tons on Wednesday from 821.45 tons on Tuesday.

Investors cautious ahead of ECB’s important meeting

Investors are expecting a more hawkish decision by the Central bank as said by a leading market analyst. That is why they remained cautious. The ECB is expected to prepare groundwork for its autumn policy when it will meet today. The more emphasis will be on growth and balancing a mini disturbance in the financial markets.

Spot Gold can consolidate

As suggested by a Fibonacci projection analysis, Spot Gold may consolidate in $1236-$1244 range for a day before it rises towards $1249. Gold prices will get a support as long as there is a weakness in the US dollar. Market analysts don’t expect Gold prices to go further down as people are not so bearish anymore. There is a support at $1200 per ounce level.

Yaron Mazor is a senior analyst at SuperTraderTV.

SuperTraderTV Academy is a leader in investing and stock trading education. Sign up for a class today to learn proven strategies on how to trade smarter.