Gold prices were trading higher on Thursday, though they pared gains from earlier on, in the face of a stronger dollar and as investors worried about U.S. and European fiscal health.
Investors also awaited policy decisions from both the European Central Bank and the Bank of England. Both central banks were expected to keep their key interest rates where they are.
Gold for December delivery rose $1.20, or 0.1%, to $1,715.
In five trading days this month through Wednesday, gold has closed down three times and up twice. The yellow metal for December delivery was down a total of $5, or 0.3%, in the month through Wednesday.
Gold “is displaying relative strength and living up to its reputation as a store of value and a safe haven,” Commerzbank analysts said in a Thursday report.
“Gold found support yesterday from robust ETF inflows: Gold exchange- traded funds tracked by Bloomberg saw their gold holdings surge by more than four tons” to a record 2,592 tons, the analysts said.
The dollar index, which benchmarks the buck against a basket of six rival currencies, was up 0.2% at 80.92. A stronger dollar makes dollar-denominated commodities more expensive for holders of other currencies.
Silver for December delivery was up 3 cents, or 0.1%, to $31.70 an ounce.
January platinum moved up $2.60, or 0.2%, to $1,542.
On the downside, palladium for December delivery was down $3.95, or 0.7%, at $606.
And copper for delivery in December was little changed at $3.44 a pound.
Marketwatch
