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Gold advances ahead of ECB's gathering as silver extends rally
[SINGAPORE] Gold climbed as investors waited for the outcome of a European Central Bank policy meeting later Thursday. Silver rose for a third day, extending a rally after entering a bull market on Tuesday.
Bullion for immediate delivery gained as much as 0.3 per cent to US$1,248.41 an ounce and was at US$1,246.79 at 10 am in Singapore, according to Bloomberg generic pricing.
Silver, which peaked at US$17.2343 an ounce on Wednesday, the highest level since May, advanced 0.5 per cent to US$17.05.
Gold's rally this year, spurred by demand for haven assets and a weaker greenback, has spilled over to silver on expectations the Federal Reserve will raise rates only at a slower pace, and as signs emerge of stabilization in China.
Preceding next week's Fed meeting are the ECB talks, although traders and economists aren't forecasting any changes. Last month, ECB President Mario Draghi cut rates to record lows and expanded an asset-purchase program.
"Investors will be focusing on the ECB, in particular anything Draghi has to say," said Jordan Eliseo, Sydney-based chief economist at trader Australian Bullion Co.
"The bigger move has been in silver of late. Silver outperforming to the upside is typically a good sign for the precious-metal complex, which is looking healthier alongside the entire commodity complex rally."