Gold: What happens next is largely dictated by the ECB decision tonight

Gold: What happens next is largely dictated by the ECB decision tonight. Gold has been rallying in the lead up to the ECB announcement tonight, with QE widely expected. As highlighted by ANZ: 'Overnight there were various reports and rumours over the potential size and composition of the ECB's quantitative easing programme. Bloomberg reported that the ECB may undertake EUR50bn of QE per month, from March until end 2016, implying total asset purchases of EUR1.1trn. The WSJ reported the same monthly amount but that QE would last for at least one year. One central bank source said it is unclear if purchases would just be sovereign bonds or other assets. The surprise rate cut by Canada overnight saw the AUD move sharply lower, with AUD denominated gold almost touching A$1600 as a result. Below is an updated chart highlighting the return in correlation in ASX gold stocks (XGD index) and AUD gold... What happens next is largely dictated by the ECB decision tonight.