Gold prices edged up yesterday, snapping a four-day losing streak on technical buying, amid expectations that the European Central Bank will dole out stimulus and cut interest rates.
Spot gold was up 0,3 percent at $1,490.27 per ounce, as of 0732 GMT. In the previous session, prices fell to their lowest since August 13 at $1,483.90.
US gold futures were up 0,2 percent at $1,502.2 an ounce.
“The ECB is expected to reduce further the interest rate into negative territory. . . The meeting could serve as a potential catalyst (for gold) and investors are already buying into the rate cut expectations,” said Margaret Yang Yan, a market analyst at CMC Markets.
Given that gold has had such a deep correction from its recent peak, investors are buying on dips, Yan added.