Gold Edges Lower, Trading Cautious in Wait of ECB’s Move - Forex News by FX Leaders
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Gold Edges Lower, Trading Cautious in Wait of ECB’s Move

Posted Thursday, September 12, 2019 by
Arslan Butt • 1 min read

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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About the author

Arslan Butt // Index & Commodity Analyst
Arslan Butt is our Lead Commodities and Indices Analyst. Arslan is a professional market analyst and day trader. He holds an MBA in Behavioral Finance and is working towards his Ph.D. Before joining FX Leaders Arslan served as a senior analyst in a major brokerage firm. Arslan is also an experienced instructor and public speaker.
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