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Precious Metals

Gold inches up on weaker dollar, ECB stimulus in focus

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Gold edged higher on Thursday on a weaker dollar, with investors looking to the outcome of a European Central Bank policy meeting later in the day for signs of economic stimulus.

The euro zone economy is widely expected to need more stimulus from the ECB, but it may not come at Thursday’s meeting.

“There are just not enough (assets) for the ECB to buy. If we see more buying, it will give a fillip to gold,” said Jeffrey Halley, business development and market strategist with OANDA Asia Pacific.

“As long as the dollar remains weak, we can see gold test $1,350 (£1,010.58) and make its way up to $1,375-80 (£1,029-33) levels,” he said.

Spot gold was up 0.2 per cent at $1,347.01 (£1,008.24) an ounce by 0657 GMT.

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Paul

The author Paul