Gold Prices On The Rise After ECB Sets Negative Interest Rates For Bank Deposits

Gold prices were falling and falling for the last many weeks. Analysts were predicting gold prices hitting $1000 mark by the end of this years.  But then came the ECB Press Conference yesterday that announced negative interest rates for the bank deposits. First reaction by the gold traders to sell as Mario Draghi, ECB President was making the announcement. Then the gold trader saw what the announcement meant for the gold market and gold prices jumped 1% by the end of the day. You can read Barrons article Gold Traders Will Take That From ECB, Yes They Will.   Gold is seen as a hedge against inflation and slowing economy. Gold has an inverse relationship with USD and equities. Gold prices are holding steady for now and all eyes are not fixed on the NFP Report release. If the US Jobs data once again surprises the market, gold prices can again take a dip as reported by CNBC Business News.

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