The gold price is headed for its 5th straight day of gains today on the back of a cautious speech from ECB president Mario Draghi who noted that the central bank will continue to pump money into the European economy.
Most had been expecting a more bullish speech and even signs on when the ECB may begin to lift interest rates off their historical lows.
Unexpectedly investors still took positions in the Euro at the expense of the US dollar which also pushed the gold price higher
"Draghi's speech was essentially dovish, emphasizing a 'very substantial degree of
Accommodation and reaffirming the commitment to quantitative easing," Mitsubishi analyst Jonathan Butler said. “This news and the resulting fall in the dollar helped gold recover from some of its earlier losses," he added.
From a Technical point of view, the situation is looking pretty good and as we mentioned last week the next resistance on the chart for the gold price would be around the $1.247 mark which the precious metal has broken through in today’s trading.
As we also noted we expect this to be the next support level as gold travels higher and the next resistance point is $1.260