Shine Trader Limited reports:
On Thursday, spot gold traded mostly below $1790, spot silver continued to decline, and the DOLLAR index rose slightly.
Again, at 19:45 Beijing time on Thursday, the European Central Bank will announce the interest rate decision, followed by the European Central Bank President Christine Lagarde’s press conference at 20:30.
The European Central Bank (ECB) held its September monetary policy meeting ahead of the Us Federal Reserve (FED) and will discuss future asset purchases at the meeting. But as the euro zone shows signs of economic recovery and the ECB has to discuss the risk of rapidly rising inflation in the region, the ECB council has gradually turned more hawkish, in contrast to the more dovish stance of The Fed’s Colin Powell.
Some respondents to a survey by the European Central Bank agreed to reduce the pace of emergency bond purchases from next quarter, starting a gradual taper. We can expect that in the fourth quarter of 2021, central banks around the world will begin to discuss the scale of bond reduction, which is the general trend. Ending QE is a gradual process, and No matter how dovish Powell is, he cannot resist this trend. Therefore, the upside of gold this year is still limited, and the probability of downside is relatively high.
Reprint indicated source：Shine Trader Limited Live information