Listen to the latest market mood for the XAUUSD pair.
Gold prices are tightly coiling up on the daily chart. The meeting today with the ECB could easily trigger a higher move in gold due to the strong impact the EURUSD has on the Dollar Index.
If the ECB is more optimistic about the state of the eurozone and that results in some EUR strength post the ECB meeting today at 1245/1330BST then that will drag the DXY down and support gold. The medium-term picture for gold remains bullish with low central bank interest rates, high levels of QE, and negative real interest rates.
A break and close above the top side of the triangle pattern below will signal a run at higher prices in the near term.
Expect gold buyers on a clean break of $1960.
Trade Risks: A negative outlook from the ECB meeting will weaken EUR, strengthen the USD, and weigh on gold.