Gold prices rose Wednesday in electronic trading, with investors anticipating a continuation of monetary stimulus by the U.S. Federal Reserve and possible fresh stimulus from the European Central Bank.
Gold for June delivery rose $2.10, or 0.1%, to $1,474.20 an ounce during Asian trading hours.
On Tuesday, gold logged its seventh win in nine sessions, climbing $4.70, or 0.3%, on expectations that the Fed later Wednesday will say it’ll keep making $85 billion a month in asset purchases.
At the end of its two-day monetary-policy meeting later Wednesday, the Fed may be more downbeat about the outlook for the U.S. economy following a round of weaker-than-expected domestic data.
Gold can benefit as a safe-haven asset in a weak economy. But in April, concerns about drops in exchange-traded gold products and cuts in gold-price forecasts spurred a massive selloff, leaving gold futures down 8%, the worst performance for the metal in 16 months.
Investors on Thursday will be watching the European Central Bank, as weak data from the euro zone have lifted expectations for cut in its key interest rate from a current level of 0.75%.
Elsewhere in the metals complex Wednesday, copper for delivery in July fell 1 cent, or 0.4%, to $3.18 a pound. July platinum rose 20 cents to $1,507.40 an ounce, but June palladium futures fell 80 cents, or 0.1%, to $697.00 an ounce.