Commodities

Gold futures remained solid as investors await ECB and BoJ meeting

Gold futures

The price of gold was nearly unmoved on Thursday’s session as markets anticipate hints of monetary policy tightening in European Central Bank and Bank of Japan meetings.

The European Central Bank (ECB) is already forecasted to create foundation for a future policy shift this autumn. It will provide emphasis on growth improvement while attempting to temper projections after settling off a small tantrum in financial markets lately.

Meanwhile in prices, U.S. gold futures was lower more than 0.19 percent to trade at $1,239.60 an ounce for its August delivery and spot gold almost unmoved to finish at $1,240.07 an ounce.

The Bank of Japan is highly expected to tackle about a brighter picture of the nation’s economy on its meeting but trimmed its inflation projections for the second time. These ignited concerns the several major central banks might have trouble on scaling back their immense stimulus program. The exports of the country have been rising for seven months straight in June driven by cargoes of electronics and cars. Japan’s economy has been continuously recovering due to signs of an external demand. This further backs up the positive economic views of the central bank.

Holdings of the biggest gold-backed exchange-trade fund in the world, the SPDR Gold Trust was also on the negative territory as it fell about 0.65 percent to 816.13 tonnes on the previous session, lower compared to last Tuesday’s 821.45 tonnes.

In other news, homebuilding in the stateside rose to its 4-month high for June, but construction activities is still controlled by the heightened price of lumber.

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