Gold Price Gains 1.5% After ECB Unleashes Bazooka Of -0.5% Interest Rate And QE Of €20 Billion A Month

September 13, 2019

◆ Gold gained 1.7% after the European Central Bank unleashed easy money measures by cutting deposit interest rates and relaunched QE “for as long as necessary”

◆ The ECB moved further into negative rates at -0.5% and will electronically create of €20 billion euros every month to buy bonds; gold rose from €1,362/oz to €1,394/oz prior to giving back gains

◆ Gold has had back to back gains after rising on Wednesday and yesterday but it shed the ECB gains later in the session on fresh hints of progress in the U.S.-China trade dispute

◆ The ECB ‘bazooka’ has increased expectations for a dovish stance from the U.S. central bank at its meeting next week and the Fed is increasingly expected to also revert to quantitative easing and move to negative rates as demanded by President Trump who called Fed officials “boneheads” this week

◆ Palladium sets all-time high on supply angst; record high of $1,621.55/oz; Gold and silver will likely also reach record highs in the coming months

◆ For the week, gold is 0.6% lower and silver is 0.3% lower

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Mark O'Byrne is executive and research director of www.GoldCore.com which he founded in 2003. GoldCore have become one of the leading gold brokers in the world and have over 4,000 clients in over 40 countries and with over $200 million in assets under management and storage.We offer mass affluent, HNW, UHNW and institutional investors including family offices, gold, silver, platinum and palladium bullion in London, Zurich, Singapore, Hong Kong, Dubai and Perth. 

The purity of gold is measured in carat weight.

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