Mumbai: Gold was little changed near a four-month low on Thursday, but faced a risk of more losses if the European Central Bank meets expectations to cut rates, a move that could strengthen the dollar and hurt bullion.
Fundamentals
Spot gold had edged up slightly to $1,244.01 an ounce. The metal is close to its 4-month low of $1,240.61 hit earlier in the
The ECB is widely expected to cut all of its interest rates on Thursday, which would push the deposit rate into negative territory for the first time. It is also seen offering longer-term loans linked to further lending, but stop short of following the Bank of Japan in launching large-scale asset purchases.
A weaker euro and a stronger dollar would make the dollar-denominated gold more expensive of holders of other currency.
Markets were also eyeing Friday's US nonfarm payrolls to gauge the strength of the economy. A weak report could burnish gold's appeal as a safe-haven.
ETF Securities, one of the biggest providers of exchange-traded funds, has submitted a proposal to develop a new global silver price benchmark when the 117-year-old London silver fix is disbanded in August.
In news from other precious metals, South Africa's new mining minister Ngoako Ramatlhodi said he hoped to resolve the strike in the platinum sector this week, and union AMCU was also optimistic the five-month stoppage that has crippled mine output could be nearing an end.
