Forexpros – Gold prices were steady in early European trade on Monday, as investors stayed on the sidelines ahead of central bank meetings in the U.S. and Europe, amid speculation over whether policymakers will implement further easing measures.
On the Comex division of the New York Mercantile Exchange, gold futures for October delivery traded at USD1,620.35 a troy ounce during early European trade, inching up 0.02%.
Gold futures were likely to test support at USD1,610.75 a troy ounce, the low from July 27, and resistance at USD1,628.55, the high from July 17.
Data on Friday showed that U.S. economic growth came in broadly in line with expectations in the second quarter, tempering expectations for a third round of quantitative easing measures from the Federal Reserve at its policy meeting on Wednesday.
The Commerce Department said U.S. gross domestic product expanded by 1.5% in the three months to June, after growing by an upwardly revised 2.0% in the first quarter.
Gold and the dollar trade inversely, and talk the Fed is considering easing can weaken the greenback and send the yellow metal higher.
Investors were keenly awaiting the outcome of Thursday’s European Central Bank policy meeting after the bank’s head Mario Draghi pledged last week to do whatever is necessary to preserve the euro.
The remarks fuelled expectations that the ECB is set to announce fresh policy measures to stem the crisis in the euro zone.
The Bank of England’s monetary policy committee was also to meet on Thursday, after data last week showed that the U.K. economy contracted significantly more-than-expected in the second quarter, fuelling expectations for a further round of monetary stimulus to shore up growth.
Elsewhere on the Comex, silver for September delivery was up 0.30% to trade at USD27.572 a troy ounce, while copper for September delivery dipped 0.04% to USD3.424 a pound.
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