The gold price has now fallen for three consecutive day after reaching a three year high of $1,272 per ounce on Tuesday.

Golds decline is a surprise when you consider the European Central Bank (ECB) is expected to announce further stimulus measures when they meet later today. Low Inflation and anaemic growth in the Eurozone is putting pressure on ECB president Mario Draghi to act.

The markets are expecting the ECB to cut the rate of interest they pay on money deposited by commercial banks from -0.3 to -0.5%. Negative rates are a last ditch attempt to stimulate the economy.

The only other tool left in the ECB’s kit bag is to increase the size of its monthly bond buying program, which is commonly known as quantitative easing. Currently the ECB is pumping 60 million euro’s a month into the continents banking system, potentially rising to 80 billion euros.

This is just another example of a central bank resorting to extreme measures to keep the show on the road.