12:38 PM
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Singapore: Gold was steady on Thursday ahead of a European
Central Bank meeting that could set the tone for the euro, while
platinum and palladium held near their highest levels in 17 months on
hopes of a better economic outlook.
Bullion has been trading sideways so far this year after signs of an improvement in the global economy prompted some investors to shift to equities and industrial metals, such as palladium and platinum.
Gold stood at $1,677.55 an ounce by 0302 GMT.
The euro, which often dictates gold's movements, could fall if ECB President Mario Draghi voices concerns about the recent swift sharp rise of the currency.
"We see a lot leading economic indicators supporting platinum and palladium. The economic outlook seems to be brighter than most of us have expected," said Joyce Liu, an investment analyst at Phillip Futures in Singapore.
"Gold is very much dependent on the outcome of the ECB. I don't think today they will give us a clear indication whether the euro is indeed overvalued. If they try to weaken the euro because the economy hasn't bottomed out, then in that case, it's possible gold may go up a bit."
Platinum added $4.25 an ounce to $1,736.99 after rising to $1,740 on Wednesday, its strongest since September 2011. Palladium rose $2.22 an ounce to $762.72 after hitting a high of $769.50 in the previous session, its strongest since September 2011.
Both metals, which are used in jewellery and auto catalysts, have gained on an improving economic outlook and after mining disruptions in South
Bullion has been trading sideways so far this year after signs of an improvement in the global economy prompted some investors to shift to equities and industrial metals, such as palladium and platinum.
Gold stood at $1,677.55 an ounce by 0302 GMT.
The euro, which often dictates gold's movements, could fall if ECB President Mario Draghi voices concerns about the recent swift sharp rise of the currency.
"We see a lot leading economic indicators supporting platinum and palladium. The economic outlook seems to be brighter than most of us have expected," said Joyce Liu, an investment analyst at Phillip Futures in Singapore.
"Gold is very much dependent on the outcome of the ECB. I don't think today they will give us a clear indication whether the euro is indeed overvalued. If they try to weaken the euro because the economy hasn't bottomed out, then in that case, it's possible gold may go up a bit."
Platinum added $4.25 an ounce to $1,736.99 after rising to $1,740 on Wednesday, its strongest since September 2011. Palladium rose $2.22 an ounce to $762.72 after hitting a high of $769.50 in the previous session, its strongest since September 2011.
Both metals, which are used in jewellery and auto catalysts, have gained on an improving economic outlook and after mining disruptions in South
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