XAUUSD: Gold toward 1180 and 1140
XAUUSd had a sudden surge because of US employment data that were bellow expectations. However the news came during EU Eastern Holidays and is was due to the surge of EUR against USD. However, bare in mind ECB's money policy and the devaluation policy of EUR against USD.
A very strong EUR is not in the interest of ECB as well as a strong USD is not good for USA.
In this war, EU is in the favorable side of the story because it has many tools to play with in order to play with the exchange rate, the best one and the more efficient one is ECB's QE. Therefore, although EUR may gain some weight from time to time, since there is no real prospect of interest rate increase by FED on a short term basis, XAUUSD will still suffer from a very expensive USD and low interest rate.
A very strong EUR is not in the interest of ECB as well as a strong USD is not good for USA.
In this war, EU is in the favorable side of the story because it has many tools to play with in order to play with the exchange rate, the best one and the more efficient one is ECB's QE. Therefore, although EUR may gain some weight from time to time, since there is no real prospect of interest rate increase by FED on a short term basis, XAUUSD will still suffer from a very expensive USD and low interest rate.
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