- Reviving safe-haven demand triggered the initial leg of the intraday up-move.
- Dovish ECB statement provided an additional boost and remained supportive.
- Bulls seemed unaffected by stronger USD; eyeing US CPI for a fresh impetus.
Gold built on its goodish intraday up-move and spiked to fresh weekly tops, beyond $1515 level in a knee-jerk reaction to a more dovish tilt by ECB.
With investors looking past the recent encouraging trade-related developments, reviving safe-haven demand provided a goodish lift to the precious metal and triggered the initial leg of the up-move from an intraday low level of $1489.
The positive momentum got an additional boost after the European Central Bank, as was widely expected, lowered interest rates further into the negative territory by 10 bps to -0.50% at the end of September policy meeting this Thursday.
Adding to this, the ECB also announced a new QE program of €20 billion per month from November 1 and reiterated to buy bonds as long as needed, which further drove strong flows towards the non-yielding yellow metal.
The up-move took along some short-term trading stops placed near the key $1500 psychological mark and seemed rather unaffected by some renewed US Dollar strength, primarily led by the post-ECB slump in the shared currency.
Market participants now look forward to the US economic docket, highlighting the release of consumer inflation figures, which along with the post-meeting ECB press conference will further produce some meaningful trading opportunities.
Technical levels to watch
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