Analysts believe the price of gold could climb higher on Thursday as the European Central Bank looks to delay implementing quantitative easing measures.
As mentioned by Kitco News:
Analysts have noted that ever since a global central bankers’ conference at Jackson Hole, markets have priced in looser monetary policy from the ECB, hurting the euro against the U.S. dollar and in turn dragging down gold prices.
According to analysts, bond markets indicate that there is a 50% chance that the ECB cuts rates another 10 basis points. Analysts at Nomura Bank, BNP Paribas and Brown Brothers Harriman are just a few who are expecting to see the central bank ease rates on Thursday.
Neil Mellor, senior currency strategist at Bank of New York Mellon, said:
The risk heading into Thursday is skewed to a stronger euro against the U.S. dollar, which would also create a short-term bounce in gold prices.