The cut was much needed and much anticipated, Andrey Kryuchenkov, an analyst at VTB Capital in London, said today .Bullion will continue trading against the dollar with the press conference ahead and the U.S. nonfarm payrolls tomorrow.
Gold for August delivery lost 0.1 percent to $1,243.30 an ounce by 7:56 a.m. on the Comex in New York. It reached $1,240.20 on June 3, the lowest since Jan. 31. Futures trading volumes were 30 percent below the average for the past 100 days for this time of day, according to data compiled by Bloomberg. Bullion for immediate delivery slipped 0.1 percent to $1,243.05 in London, according to Bloomberg generic pricing.
EUR/USD sank to a fresh four-month low of 1.3503 after ECB President Draghi unloaded his bag of easing tricks onto the market. It has since stabilized above 1.3530, helped by Draghi's comment that he has now reached the lower bounds of interest rates. EUR/USD is now at 1.3563 and the breakout level on the downside was 1.3580, so any break back above here could see some weak shorts head for the exit.