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USAGOLD/Peter Grant/04-27-17
Gold continues to consolidate around the 1265.00 level, weighed by the present risk-on environment, but buoyed by a softer dollar, geopolitical risks and some uncertainty about how much of the Trump agenda might actually get implemented. With the French political risks likely unwound, the yellow metal might be staging for a rebound.
The ECB held steady on both interest rates and the QE schedule today, as was widely expected. However, the door remains open for further accommodation: “[I]f the outlook becomes less favourable, or if financial conditions become inconsistent with further progress towards a sustained adjustment in the path of inflation, the Governing Council stands ready to increase the programme in terms of size and/or duration.”
There has been speculation this week that a more hawkish tone might be communicated in June, once France has a new President. “We don’t do monetary policy on the likely outcome of elections,” claimed Draghi.
Draghi: In the Governing Council, we discuss policies not politics
— ECB (@ecb) April 27, 2017
Initial jobless claims rose 14k last week to 257k, above expectations of 241k. Durable goods orders disappointed, rising 0.7% in March, on expectations of +1.2%. The advance trade deficit held steady at -$64.8 bln in Mar, near expectations of -$65 bln.
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