Gold Edges Lower, Trading Cautious in Wait of ECB’s Move
Gold prices edged lower as the market sentiment improved as a result of US and China putting off tariff hikes on each other’s imports as a goodwill gesture ahead of their next meeting in October. At the time of writing, GOLD is trading at a little above $1,493.
The positive development in the trade war has caused global stock markets to rally in the hopes that both sides are seriously interested in resolving their differences. After China exempted a list of 16 US imports from additional tariff hikes, Trump welcomed the development and in retaliation, put off tariff hikes on billions of dollars’ worth of Chinese imports for two weeks till October 15.
Gold is also trading cautious ahead of the ECB meeting taking place later today over expectations of the central bank sounding dovish and unveiling stimulus measures and possibly a rate cut as well. There is a high expectation that the ECB will roll out new stimulus programs to support the weakening Eurozone economy, and gold could move up or down depending on how dovish a tone the central bank takes at its meeting.
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