Gold prices rose on Thursday as investors awaited policy actions by the European Central Bank which could influence gold trade.
The ECB is expected to expand its €750 billion Pandemic Emergency Purchase Program by €500 billion after ECB President Christine Lagarde downgraded the central bank’s eurozone gross domestic product estimate to a drop between 8% and 12% this year.
The ECB’s updated policy statement will be released at 7:45 a.m. Eastern Time, and will be followed by a news conference featuring Christine Lagarde, 45 minutes later.
Gold buying has been buoyed by central bank stimulus measures to limit the economic harm from the COVID-19 pandemic, but signs of economies coming back to life from lockdowns to halt the spread of the deadly infection has dulled bullion’s appeal.
Gold for August delivery on Comex was trading $9.70, or 0.6%, higher at $1,714,50 an ounce, after tumbling 1.7% on Wednesday, amid a strong rally in global equities.
Meanwhile, July silver added 5 cents, or 0.3%, at $18.005 an ounce, following a 1.7% drop in gold’s sister metal on Wednesday.
Source : Market Watch