Gold prices traded in a tight $6 range around $1,615 an ounce on Thursday ahead of an expected rate cut by the European Central Bank that should boost liquidity and enhance bullion's appeal. Spot gold traded flat at $1,615.10 an ounce by 0629 GMT. US gold futures contract for August delivery lost 0.4 percent to $1,615.60. "In the medium to long run, a rate cut will help underpin gold prices," said Li Ning, an analyst at Shanghai CIFCO Futures.
Low interest rates typically spur demand for gold.