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Gold prices climbed after the ECB meeting. The central bank did not disappoint, lowering rates by 10 basis points and announcing the launch of a bond purchase program on Nov. 1. US yields rose, with the 10-year rate hitting a two-week high of 50 days. moving average. The dollar began to rise after the euro fell as a result of the ECB decision, then reversed and fell. President Trump was again on the band saying that the Fed had to follow the path of the ECB and reduce interest rates below zero. He was particularly upset by the rising value of the dollar against the euro.
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Technical analysis
Gold prices first skyrocketed, then moved closer to the 10-day moving average at 1515, and then fell. The short-term momentum has become positive as the fast stochastic has generated a cross buying signal in the oversold territory. Currently, the fast stochastic shows a reading of 13, which is well below the oversold 20 trigger level, which could herald a correction. The medium-term dynamic is negative because the MACD histogram is printed in red with a downward-sloping trajectory that indicates lower prices.
ECB cuts interest rates
The European Central Bank cut its main deposit rate and announced that it would start buying 20 billion euros a month from asset purchases, known as easing. This should begin on November 1st. The level of asset purchases has been lower than the hope of some investors. Mr Draghi said that it was "high time for tax policy to take over", suggesting that monetary policy alone would not be able to stimulate economic growth and that the EU would have need a tax policy to help create a better investment environment.
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