By Ed Ballard
Gold edged higher Thursday, bouncing off a three-week low, as traders awaited a European Central Bank meeting that could herald an expansion of the bank’s stimulus program.
Spot gold gained 0.6% to $1,322.18 a troy ounce in late-morning London trade. The precious metal shed around 1.5% to around $1.313 on Wednesday, the lowest level seen this month. The WSJ dollar index, which tracks the dollar against a basket of currencies, was down 0.32%.
“We’ve got the ECB press conference today so people will be looking out for any clues about any extension of the quantitative easing program,” said Nitesh Shah, a commodities strategist at ETF Securities.
“That could move gold prices from the angle of central banks expanding balance sheets and being currency debasing, which is supportive for gold,” Mr. Shah said.
Economists don’t expect the European Central Bank to boost its stimulus measures Thursday, but many believe officials will signal such a move is on the cards at the bank’s September meeting.