Gold Around $1245 as Markets Diverted

Gold hunkered near its weakest since early 2014 on Tuesday, in the midst of its longest losing streak in seven months, as rallying stock markets diverted interest from safe-haven bullion.

Ahead of the latest European Central Bank policy meeting and key U.S. data this week, prices have fallen sharply since last week after breaking through $1,285 an ounce, the lower limit of a range they had kept to for much of the previous month. They hit a low of $1,240.69 an ounce earlier on Monday, their weakest since late January.

Spot gold stemmed early losses, trading around $1,247, while U.S. gold futures for August delivery also narrowly recovered, up $1.30 an ounce at $1,245.  The ECB is tipped to announce a package of policy options after its meeting on Thursday, following heavy hints that monetary policy will be loosened in a variety of ways to support growth.


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