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ECB-launched QE Propels Gold High




The markets got a shock today as the ECB's Mario Draghi announted the launch of the eurozone's own quantitative easing programme worth 1.1 trillion EUR (1.3 trillion USD), which will last until september 2016 and will include monthly government bond purchases worth 60 billion EUR.

Bloomberg is giving us details about the controversial money-printing programme.

The article is telling us that there is a "global divergence" in monetary policy. Denmark, Turkey, India, Canada and Peru are cutting interest rates, while the Swiss National Bank has removed the Swiss franc's cap.

The ECB's bond-purchasing programme will start in Mach 2015 and will last until September 2016.

Whether this will start a new gold bull market or not, remains to be seen. It's highly likely, though.

Let's keep in mind that gold's decade-long bull market was actually fueled by the US Fed's launch of the quantitative easing programme.

One thing is certain: gold's price in euros is breaking away from the one in US dollars. While the latter still has the potential to trade sideways or even correct, the euro graph shows a decisive abrupt increase.


1 year gold price in EUR

Gold's powerful spike: ignited first by the Swiss fran peg-removal, then brought higher by the ECB's QE programme announcement







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