Gold back to square one in euro terms after EUR/USD movement

Gold responded hardly to ECB's measures and inched up little to $1060 per troy ounce. As the USD fell sharply, gold in Euro terms came under pressure and declined below 970 EUR per troy ounce to lowest since December 2014.

Yesterday ECB loosened its monetary policy to a less extent than Draghi suggested it might. All the ECB has done to extend its monthly bond purchases by sis months until March 2017, with no increase in the volume.

Depo rate was cut by 10 bp to -0.3%. The more positive Eurozone economic data recently discouraged ECB from taking more steps.

"Our economists believe that monetary policy will be further loosened to a moderate extent next year. In principle, the expansionary monetary policy followed by many central banks should lend support to the gold price", says Commerzbank. 

Market is now waiting eagerly for USD's decision in December rate meeting.