Russia and China Increase Gold Holdings As Central Banks Continue Loose Monetary Policies

http://goldsilverworlds.com/investing/russia-and-china-increase-gold-holdings-as-central-banks-continue-loose-monetary-policies/

Even though the price of gold failed to make a decisive break above the 200 day Moving average, the price looks set to continue its upward trajectory. However, one can expect some resistance close to the 200 day MA at around the $1185 an ounce level.
After briefly breaching $1190 an ounce level, gold prices came under some renewed selling pressure as the U.S dollar gained against it major peers especially the euro.
The rally in the greenback was sparked when European Central Bank (ECB) president Mario Draghi announced that the central bank would not cut rates, but at the same time, he strongly hinted that they would act later this year. The ECB left the main refinancing rate unchanged at 0.05%. The marginal lending rate also stayed unchanged at 0.3% and the deposit rate at -0.2%.
At the press conference, President Mario Draghi acknowledged that the QE program has been “proceeding smoothly” but also suggested that the ECB is concerned about the slowdown in emerging markets and as such the central bank would re-examine its bond buying program in December.
According to Draghi the ECB could extend its current programme of Euro-QE beyond its current expiration date of September 2016 or even cut interest rates deeper into negative territory. The bank’s deposit rate is currently minus-0.2%.