E.C.B. Holds Rates, Sends Gold, Commodities Higher
The E.C.B.’s latest policy meeting ended with the central bank not bowing to pressure from choking banks to lower interest rates and held the benchmark lending rate at 0.75% for the time being.Â This lifted the cloud that had been hanging over the Euro for the past few weeks while capital in the major U.S. bond and equities markets digested the new tax laws as well as the change of the calendar year.Â The Euro rallied back near the highs made in December near $1.33 and sets up a bullish end of the week and a chance to move towards $1.35 next week
This move up in the Euro was, for the first time since November, coupled with a move up in gold as well, as traders now believe the E.C.B. is going to print slower than the U.S. and that raises inflation expectations and hence Gold. Gold rallied all the way to $1680 before running into selling pressure.Â Gold took silver, copper and Brent Crude along with it but none of these commodities were able to break through clear chart resistance and will likely now not do so without a push from the Euro through $1.33.
Tomorrow sets up a weekly close that could be very bullish for next week in the precious metals and inflation sensitive commodities.Â Watch for a close above $3.725 in Copper, $113 in Brent Crude and $31.55 in Silver.Â If Gold were to manage a close above $1701 tomorrow that would be very bullish for the rest of the month heading into February.
Currency Articles - May 20, 2015 10:01 - 0 Comments
More In Currency Articles
- BOE Suggesting Interest Rates Won’t Rise This Year
- Interest Rate Announcement Not Expected To Impact
Gold and Oil News - Oct 7, 2014 17:44 - 0 Comments
More In Gold and Oil News
- Gold Falls But Higher Prices May Be On The Horizon
- Gold Prices Spike Higher On Increased Israel Tension
Shares and Markets - May 1, 2014 10:50 - 0 Comments
More In Shares and Markets
- Glaxosmithkline Share Price Rebound Halts On Slower Sales
- Royal Mail Share Price Will Not Be Investigated