Gold futures moved lower Wednesday in step with a weaker euro a day ahead of what’s expected to be additional monetary stimulus courtesy of the European Central Bank.
Gold futures for April delivery were down $8.70, or 0.7%, at $1,254.70 an ounce after testing $1,279 during Tuesday’s U.S. trading session. Gold touched $1,279.60 last week, the highest since Feb. 3, 2015. May silver is off 7 cents, or 0.5%, to $15.30 an ounce.
U.S. stock futures were flashing a higher open on this bull market’s birthday, boosted in part by a recovery in oil prices. U.S.-traded crude is near $36.94 a barrel. London-traded Brent pushed back above $40 a barrel.
Economists and investors are broadly looking for the ECB on Thursday to cut its deposit rate by at least 10 basis points and expand its asset-buying program in an effort to pump life into persistently below-target growth and inflation. Any decision that defies expectations could stir metals trading volatility. Markets also expected more aggressiveness from the ECB in December and were left disappointed. In response then, the euro reversed losses against the dollar, lifting gold.