The gold price fell yesterday as U.S. employment data beat expectations raising the belief of interest rate rise which resulted in a strengthening U.S. dollar. The gold price fell 0.4% to $1,204.69 per ounce during Asian trading.
Attention will now shift to Mario Draghi, President of the European Central Bank following his comments last month that the ECB would be prepared to purchase a wide variety of assets to fight deflation. It now only seems a matter of time before a full blown stimulus package is introduced. Previously the ECB has stated they are willing to expand their balance sheet up to 1 billion euros in an attempt to stop the 18 member Eurozone falling into a deflationary spiral.
With QE becoming more and more likely it is not surprising gold is now trading steady at six week high against the Euro. As the Russian ruble continues to plunge as the economy is hit hard by falling oil prices and western sanctions, gold priced in rubles is now at an all-time high.
Historically gold outperforms traditional assets when Central Banks print money and expand their balance sheets.
Gold is currently trading at £768.21 per ounce, silver £10.49 per ounce, platinum £788.00 per ounce and palladium £511.15 per ounce.