Gold inches up as euro gains against dollar

Gold inches up as euro gains against dollar
A strong euro means a weaker dollar, so that's definitely the reason that gold is firm.

bengaluru - The ECB may soon announce it will wind down its stimulus programme



Gold prices inched up on Thursday as the euro rose to two-week highs against the US dollar, with investors waiting for meetings of key central banks and the US-North Korea summit all due next week.

Spot gold was up 0.1 per cent at $1,297.46 per ounce by 0703 GMT, while US gold futures for August delivery were largely unchanged at $1,301.50 per ounce.

The dollar index, which measures the greenback against a basket of six major currencies, fell 0.3 per cent to 93.388.

The euro climbed to two-week highs against many of its rivals on Thursday, on rising bets the European Central Bank (ECB) may announce it will wind down its stimulus programme by year-end as early as next week.

"A strong euro means a weaker dollar, so that's definitely the reason that gold is firm," said Yuichi Ikemizu, Tokyo branch manager at CIBC Standard Bank.

"The market is pretty quiet, there is no big factor to make the market move at the moment," Ikemizu said, adding that investors were waiting for events next week.

A Federal Reserve policy meeting and US-North Korea summit are both due next week, while a G7 summit begins this Friday in Quebec. - Reuters


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