Gold price rises after gloomy Draghi outlook

Gold price back above 1,500 dollars

The gold price has again broken through the USD 1,500 mark. This morning at 9:00 a.m. the troy ounce of gold on the spot market cost 1,505 US dollars. This was equivalent to 1,355 euros. The price of the precious metal rose yesterday, Thursday, by almost 1 percent following previous losses.

Draghis last PK

Mario Draghi held his last press conference as President of the European Central Bank following the recent ECB monetary policy meeting. From 14:30, the Italian patiently answered the journalists’ numerous questions, including those about his last term in office and his assessment of future developments. And his outlook was not particularly rosy. Although he explained that the economy was showing signs of strength, the outlook was “worse and worse”. And this negative development is coming from countries in which the manufacturing industry plays an important role – including Germany in particular. Finally, the ECB decision of the previous meeting also speaks volumes in which all the money floodgates were opened once again under Draghi’s leadership. Above all, the securities purchases for an indefinite period of time are a signal that banks and economies in the euro zone are anything but running smoothly.

Silver gains even stronger

Yesterday afternoon, at about the same time, weak U.S. economic data also came in. For example, incoming orders for durable goods fell by 1.1 percent in September. Gold prices rose more significantly after 3 p.m. yesterday, climbing a good 15 dollars by the close of trading (see Intraday chart above). Silver rose even stronger. The price of the white metal jumped back above the 18-dollar level this morning. At 9am, the silver ounce cost 18.02 US dollars. That was equivalent to 16.21 euros. Since the beginning of the week, the silver exchange rate has gained almost 3 percent.

Trump against Fed

In the evening, US President Donald Trump again raged against the Fed. In a Twitter message he stated: “The Federal Reserve has neglected its duties if it does not lower the interest rate and ideally even stimulates it. Take a look around the world at our competitors. Germany and others are actually being paid to borrow money. Fed was much too fast to raise, and much too slow to cut! The next Fed meeting is scheduled for next week.