Gold rises on softer dollar; investors focus on ECB, BOE meetings

[BENGALURU] Gold prices inched higher on Thursday (Dec 16) as the dollar eased, while investors shifted their focus away from the US Federal Reserve to other key central bank meetings.

Spot gold was up 0.2 per cent at US$1,780.63 per ounce by 1.35 am GMT. US gold futures rose 0.9 per cent to US$1,780.20.

The dollar index moved lower from a 3-week high hit in the previous session.

The Fed said on Wednesday (Dec 15) it would end its pandemic-era bond purchases in March and paved the way for 3 quarter-percentage-point interest rate hikes by the end of 2022.

The European Central Bank (ECB), the Bank of England (BOE), as well as the Swiss National Bank and Norges Bank, will hold policy meetings later on Thursday.

ECB officials are set to call time on the central bank's Pandemic Emergency Purchase Programme but investors will look to see how the 6-year old Asset Purchase Programme may pick up the slack, though rate rises are a way away.

Wall Street reversed earlier losses and climbed into positive territory after the Fed meeting.

Spot silver was flat at US$22.05 an ounce.

Platinum shed 0.1 per cent to US$918.01 and palladium gained 1 per cent to US$1,613.61.

REUTERS