The European central bank in its meeting will try and reduce the rise of the euro against the major currencies as it hurts exports. However the ECB is expected to confirm liquidity reduction measures in October. If there is no confirmation on liquidity reduction measures by the ECB, then the euro/usd will fall to 1.1642 and 1.1444 in the short term. There is some speculation that the so called Brexit may not actually happen. Gbp/usd can rise to 1.5000 in the long term if Brexit does not happen. It is too early to comment on such things. The Canadian central bank raised interest rates yesterday. Divergent central bank policies and lack of clarity on future policy measures ensure that medium term bullishness in gold and silver is intact.
Developments in crypto currencies will affect bullion prices.
This post was published at GoldSeek on 7 September 2017.
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