Gold Price Analysis: XAU/USD retreats further from weekly highs to the $1,950 area
Gold prices peaked before the American session at $1,972, the highest level since September 2 and then pulled back more than $20. It failed to hold onto gains and printed a fresh daily low at $1,948. It quickly bounced back above $1,950 and as of writing it trades at $1,954 modestly lower for the day.
The yellow metal retreated amid a recovery of the US dollar across the board. The US dollar Index climbed from 92.78 the lowest in almost a week to 93.15, erasing all losses. At the same time equity prices in Wall Street moved off highs and US yield remained in positive ground near daily highs.
Will Lagarde and Mnuchin push gold higher?
The ECB held its monetary policy stance steady. Meanwhile, the U.S. fiscal deficit reached its all-time high. What does it all mean for the gold prices?
On Thursday, the members of the Governing Council of the ECB met together to undertake monetary policy decisions. They decided to leave the interest rates and the conditions of the quantitative easing unchanged. This lack of action was widely expected, so attention shifted to the fresh economic projections and the Lagarde's press conference. Importantly, the ECB lifted its growth forecast for 2020 from -8.7 to ‘just' -8.0 percent. With inflation projections almost unchanged, the recent monetary policy statement sounded a little bit more hawkish than the previous one.
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