Safe-haven demand triggered a gold rally to 1524, however, the yellow metal had to return back to 1500 afterwards.
The ECB decision made the pound dip below 1.2300, however, the cable managed to correct up to 1.2360 afterwards.
Euro erased all its losses yesterday that followed the ECB decision. A buying momentum around the euro should lift this currency to fresh highs now.
The economy of Germany kept showing weakness, China continued to disappoint and we see signs that the US is also slowing. It is a good buying opportunity for the precious metal. However, the gold short-term dynamics will depend on the future moves of ECB and Fed.
The British pound printed fresh lows, but remained in a range, above 1.2300. All eyes are on the ECB's meeting, however, the sterling may ignore it.
Euro dropped across the board as a higher-than-expected US PPI figures gave a modest support to the dollar.
Hopes that the main central banks will introduce more stimulus soon allowed risk-on sentiment to dominate the market weighing on the precious metal.
Boris Johnson confirmed rejection of Northern Ireland-only backstop in meeting yesterday. This news encouraged the pound which set fresh highs after that.
The EUR/USD is stuck in a flat as market participants do not hurry to open deals ahead of the ECB meeting.
A risk-on mood prevailed on Monday, as a result the precious metal hit fresh two-week lows. However, gold sell-off is limited by the market expectations of the further Fed easing.
