Gold clung to small overnight gains on Thursday on some
safe-haven bids due to the Ukraine crisis, but the metal continued to trade
near half month lows as brighter prospects for the US
economy dimmed its appeal. Investors were waiting for a European Central Bank
meeting later in the day to see whether it will deliver a fresh round of policy
stimulus, and its impact on the euro and the dollar.
Gold, seen as an alternative investment during times of
geopolitical and financial uncertainties, has gained 5 percent this year
largely on tensions in Ukraine and the Middle East. But in recent weeks, a
string of encouraging US economic data, a stronger dollar and weak physical
demand in Asia have pressured bullion. Data on Wednesday showed new orders for
US factory goods posted a record gain in July and auto sales last month
accelerated to their highest level in 8-1/2 years, offering further bullish
signals for the economy.
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