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 eurozone 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 and make its way up to $1,375-80 levels," he said. Spot gold was up 0.2 percent at $1,347.01 an ounce by 0657 GMT. US gold futures rose 0.2 percent to $1,351.70. "While weaker-than-expected US economic data over the past week point to diminished market-expected probability of a rate hike in September, we believe that the outlook for gold price movements is likely to be mildly bearish over the rest of 2016," said NAB analyst Vyanne Lai.
Comments
Comments are closed.