The kinetic energy of spot gold is declining, and the new ECB policy is expected to intensify this momentum. Provided by FX678

On Thursday (July 22), international gold prices fell, hovering near the low of $1,794.83 per ounce recorded in the previous day, but the weaker U.S. dollar index limited the rise in gold prices. Investors are waiting for the ECB policy meeting later in the day.

At 14:34 Beijing time, spot gold fell 0.15% to US$1800.92 per ounce; the main COMEX gold contract fell 0.13% to US$1801.0 per ounce; the US dollar index fell 0.04% to 92.751.

DailyFX strategist Margaret Yang said: “Gold prices are under pressure because the U.S. dollar is currently hovering near the three-month high. U.S. stocks rebounded for the second day in a row. This means that traders are getting rid of virus concerns and returning to re-inflation trading.”

Investors seem to temporarily put the pandemic fears behind and wait for the ECB policy meeting to obtain guarantees that policy support will continue for a period of time. The European Central Bank will almost certainly promise to extend the duration of stimulus measures on Thursday to fulfill its promise to boost inflation, but the debate among policymakers may be tense and will not announce new measures.

DailyFX’s Yang said: “It is widely expected that the European Central Bank will remain dovish, so this may cause the euro to weaken against the U.S. dollar, which will benefit the U.S. dollar, which will be detrimental to gold. For now, the recent momentum of gold seems to be inclined to the downside. .”

International Monetary Fund (IMF) President Georgieva said on Wednesday that the organization this month predicts that the global economy will grow by about 6% in 2021, the same as forecast in April, but unless vaccination speeds up, the economy will recover. Will be suppressed. She also added that at the current rate of vaccination, the goal of ending the pandemic before the end of 2022 will not be reached.

Jeffrey Okamoto, the first vice president of the IMF, called on countries to shift from saving the economy from collapse to restoring growth-oriented policy reforms to boost the prospects for recovery and make it more sustainable. The new crown epidemic has delayed and reversed some of the reforms that promote growth, and resuming these reforms can help make up for the output lost during the epidemic.

Bloomberg reported on Wednesday, citing people familiar with the matter, that the re-election of Fed Chairman Powell has received widespread support among White House advisers, but a decision is expected to be made later this year, and the relevant proposals have not yet been submitted to US President Biden.

The U.S. Congressional Budget Office (CBO) said on Wednesday that it expects the U.S. Treasury Department to hit the debt ceiling in October or November. The Democrats and Republicans broke out in Congress on whether to raise the US debt ceiling. The current debt ceiling of the United States is $28.5 trillion. Failure to bridge the disagreement on whether the increase in the statutory debt ceiling should be accompanied by a reduction in government spending may result in the shutdown of the federal government and even a debt default.