Gold Prices Recover Ahead ECB's Meeting

Gold prices recovered from a recent plummet ahead of the ECB's crucial meeting, while the market awaits the naming of the next Federal Reserve chief.

Gold prices recovered from their lowest level in more than a couple of weeks on Thursday, while the dollar seemed to take a break from its latest rally before a crucial European Central Bank meeting later in the day.

Comex gold futures increased $3.50, or around 0.3 percent, to $1,282.42 a troy ounce. This rise followed its worst dip since October 6 at $1,272.00 in the last session.

The gold recovered from its early plummet, and dished out a small gain on Wednesday, while the dollar and stocks stumbled after their recent rally.

Meanwhile, the dollar index, which compares the greenback against a basket of six other rival currencies, fell 93.46 lower, apparently veering away from its two-week high of 93.90 last Monday.

Silver futures added 9.0 cents, or 0.5 percent, to $17.01 a troy ounce. Platinum changed only slightly at $926.30, while palladium rose 0.7 percent to $964.28 an ounce.

European Central Bank’s Meeting

The ECB is expected to shed light regarding the future of its monetary policy

The European Central Bank’s meeting on Thursday is beginning to transform itself into a key moment for the region’s financial market.

Following months of rumors and speculations, investors and the market are expecting that the condition and future of the Bank’s quantitative easing experiment will be clarified.

Investors have been keeping an eye on this program, with different focuses on tab.

“What ECB President Mario Draghi would like to do is stage an exit from a program without creating volatility. The ECB has been very, very clear about moving market consensus to where they want it,” said Ben Edwards, a director at BlackRock.

The ECB will announce its monetary decision later on Thursday, and most of the focus will be on Draghi’s press conference after the announcement. Investors are looking for more clues on when and how it could start tapering off from its monthly quantitative easing.

Next Fed Reserve Chief

Meanwhile, in the United States, market watchers continue to make guesses as to who the next Federal Reserve chief will be and to speculate on how the change in leadership will influence the outlook for interest rates.

US President Donald Trump on Tuesday surveyed the Republicans regarding their choice between Stanford University economist John Taylor and current Fed Governor Jerome Powell as the Fed chief. More senators chose Taylor.

Taylor has gotten the preference of the more senators since he is seen as someone who may pave the way for the Fed to quicken interest rates increases.

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