Gold was seen gaining for the first time in three days in London on speculation central banks will signal further steps to support growth.
The Federal Open Market Committee ends a two-day meeting today, while European Central Bank officials convene tomorrow. Italian Prime Minister Mario Monti and French President Francois Hollande said yesterday the two countries are “determined” to do everything to protect the euro zone’s integrity. Gold reached a five-week high of $1,629.35 an ounce on July 27 after ECB President Mario Draghi said he would work to preserve the euro.
“Precious-metals markets are waiting for comments from the ECB and FOMC, to see if any guidance of more decisive action and, ultimately, balance-sheet expansion is given,” Nick Moore, head of commodity research at Royal Bank of Scotland Group Plc in London, said today in a report. “QE3 remains a possibility further ahead,” he said, referring to more quantitative easing.
Immediate-delivery bullion was little changed at $1,614.90 an ounce by 11:32 a.m. in London. Prices gained for a second month in July, increasing 1.1 percent. December-delivery futures were 0.2 percent higher at $1,618 on the Comex in New York.
Gold at the morning “fixing,” used by some mining companies to sell output, slipped to $1,614.75 an ounce in London from $1,622 yesterday afternoon.
Bullion holdings in exchange-traded products expanded 4.8 metric tons to 2,395.4 tons yesterday, data compiled by Bloomberg show. U.S. Mint sales of American Eagle gold coins dropped 49 percent to 30,500 ounces in July, the lowest amount since April, data on the mint’s website showed.
While the Fed refrained from introducing a third round of asset purchases at its June meeting, Chairman Ben S. Bernanke indicated it’s an option. Gold rose about 70 percent as the central bank bought $2.3 trillion of debt in two rounds of quantitative easing that ended in June 2011.
Silver for immediate delivery slipped 0.2 percent to $27.9275 an ounce. Palladium rose 0.2 percent to $590.63 an ounce. Platinum declined 0.5 percent to $1,408.50 an ounce.
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