Gold prices gained from last session’s fall on lingering political tensions and a weaker dollar, but were still near their lowest in over a week as equities were set to extend their gains on economic optimism.

Spot gold rose 0.4% to $1,703.67 per ounce, as of 0212 GMT. On Wednesday, it fell 1.7% to reach its lowest since May 27.

U.S. gold futures were flat at $1,704.90.

The European Central Bank is certain to give more stimulus, with the only question being timing — whether later on Thursday or holding out until July.

More stimulus and lower interest rates tend to benefit gold, which is often seen as a hedge against inflation and currency debasement.

The dollar index has fallen about 1% this week, making gold cheaper for holders of other currencies.

Source : Reuters