Gold rallies on 'severity of the ECB's actions'
By GCRU Gold News on Saturday, June 7 2014, 09:52 - Permalink
"That gold has held on to its latest gains suggests that the market is taking the imminent expansion of the ECB's balance sheet as a positive, and rightly so. But expectations on gold price moves from here should not be modelled against gold's response to the Fed's QE," UBS said in a note.
Gold enjoyed its best rally since May 14 on Thursday, responding positively to the ECB's moves to unsterilise bond purchases, increase liquidity and move rates into negative territory, although the market had been slightly short ahead of its announcement.