Gold Could Gain Bounce From ECB Meeting

  • Posted Thursday, September 04, 2014 at 01:24 PM

Los Angeles CA, September 4 (Tangible Investments) - by James O’Dell - Gold and Silver prices were mixed on Wednesday with Gold gaining $3.60 or 0.28 percent to close at $1,269.65 an ounce, as the yellow metal edged higher on technical and physical buying ahead of a key European Central Bank (ECB) policy meeting on Thursday. The price of Silver eased one cent to close at $19.19 an ounce while the Gold/Silver ratio, the measure of the number of Silver ounces needed to buy an ounce of Gold, rose to 66.16.
 
Analysts, note that Gold could bounce higher on Thursday should the ECB delay in launching a much anticipated quantitative easing (QE) program. Markets have been pricing in looser monetary policy from the ECB since the economic symposium in Jackson Hole last month, according to analysts, and it has hurt both the euro and Gold prices.
 
There is a good chance for a short term bounce in Gold prices on Thursday since it is unlikely that the ECB will trim interest rates or that ECB President Draghi will announce any new QE measures, according to Bank of New York Mellon's Neil Mellor. “Since Jackson Hole, everyone has been getting excited about QE but there are still some hindrances to that process,” cautions Mellor.
 
Three factors will delay the announcement of looser monetary policy at Thursday’s ECB meeting, says Mellor, the first being Germany's disapproval of the ECB buying government bonds, the second is the September launch of the ECB’s new targeted long-term refinancing operations (LTRO) which could be disrupted by the announcement of a fresh QE strategy; and finally, loosening monetary policies any further may be a disincentive for euro zone countries to push for needed economic reforms, which is President Draghi’s ultimate goal according to Mellor.
 
Preserve your wealth and secure your retirement by making a tangible investment in physical Gold and Silver in 2014. Call Toll Free 1.800.741.5014 and let the friendly staff at Tangible Investments (learn about us here), owned and operated by world-renowned coin expert Silvano DiGenova, assist you in your next purchase or sale. You may also want to allow one our Gold IRA specialists to construct for you a precious metals IRA tailored to your specific needs. Please share our site with your friends on Twitter and Facebook.

Get a Free Gold Investor's Guide
Metal BID ASK CHG$ CHG%
Gold 1235.30 1236.00 $2.35 0.19%
Silver 18.73 18.77 $0.05 0.27%
Platinum 1368.30 1371.30 $4.30 0.32%
Palladium 843.50 846.50 $8.50 1.01%
Are you sufficiently diversified? Our founder and president, Silvano DiGenova, explains why hard assets are essential to your portfolio. [Read more]
If you’re a collector of rare or beautiful items, you’re in the right place. We welcome you to visit the eBay store for Tangible Investments, America’s top buyer of rare coins! [Visit Now]
Get paid the most for your items from one of the nation’s most trusted firms. We buy bullion, coins, jewelry, watches, fine art, antiques, and collectibles. [Read More]