Gold prices rose on Wednesday on expectations of monetary policy easing from leading central banks to shore up the global economy, though a stronger dollar curbed gains.

Spot gold was up 0.7% at $1,426.40 an ounce at 11:38 GMT but still short of last week's peak at $1,452.60.

U.S. gold futures rose 0.4% to $1,426.80.

Continued strong investment interest and buying in gold, expectations of interest rate cuts, high geopolitical tensions regarding Iran and a gloomy global economic outlook are propping up gold prices today, said Commerzbank analyst Carsten Fritsch.

The European Central Bank (ECB) is expected to signal easier monetary policy when it meets on Thursday. Investors are also looking ahead to the U.S. Federal Reserve's July 30-31 policy meeting, at which it is expected to cut its overnight benchmark lending rate.

Source : Reuters