Gold Rises After ECB awaiting More Dovish Fed Rhetoric

April 10, 2019 Share Print 0

Adding to investor concerns, the International Monetary Fund (IMF) on Tuesday slashed its global economic growth forecasts for 2019 and warned growth could slow further.

Gold is used as a safe investment during times of political and financial uncertainty.

“The yellow metal will continue to be bid as the Brexit drama and trade stories unfold at the same time that major central banks continue their dovish rhetoric,” Alfonso Esparza, senior market analyst at OANDA, said in a note.

Investors now await the release of the Federal Open Market Committee meeting’s minutes from its March meeting and the European Central Bank’s policy decision, both due later in the day.

Lower interest rates reduce the opportunity cost of holding non-yielding gold.

via Reuters

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Alfonso Esparza

Senior Currency Analyst at Market Pulse

Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency
trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.