03 May Friday Update

ECB yesterday decided to lower its key rate by a quarter percentage point to a record low 0.5 percent, and it held out the possibility of further policy action to support the recession hit euro zone economy. On Wednesday, FOMC said that it would continue buying USD 85 billion in bond each month to keep interest rates low and spur growth. Both of these facts are supportive for Gold as it affirms the metal's inflation hedge appeal.

Technically as well, the price currently is around at a very important level,35845, 61.8%  retracement  of the recent fall of 12 and 14 April. If that fall were just a panic response to Fed easing the QE, which doesn't seem to be happening immediately, considering the above statement; the 61.8 % retracement level is broken; and with the current market sentiment we may see Gold price moving higher upside.

Economic releases to keep an eye on today are : Services PMI - GBP @ 2:15 PM and EU Economic Forecasts @ 2:45 PM. Later on the evening - Non Farm Employment Change, Unemployment Rate, and ISM Non Manufacturing PMI - USD.