Gold was set to recoup its losses from a day earlier as the euro strengthened against the dollar in the wake of the European Central Bank meeting, boosting investment demand for the precious metal.
Gold for December delivery GCZ7, +1.02% rose $11.60, or 0.8%, to $1,350.60 an ounce, set to more than recoup the 0.4% loss it saw a day earlier. A settlement around this level would be highest since early September for a most-active contract, according to FactSet data. The SPDR Gold Shares exchange-traded fund GLD, +1.00% climbed 0.6%.
The euro EURUSD, +0.9231% rose firmly against the U.S. dollar following the ECB’s decision to leave interest rates unchanged. In a news conference, the central bank’s President Mario Draghi indicated that the long-awaited decision on how and when to taper the ECB’s asset purchases would likely come in October.