Gold futures traded steady after the European Central Bank said it wouldn’t consider adding to bullion purchases.
The ECB discussed buying all assets except the metal as it plans to reassess stimulus next quarter, President Mario Draghi said today. The comments come after Executive Board member Yves Mersch said last month that the bank could “theoretically” buy bullion.
Gold rebounded almost 7 percent since touching a four-year low on Nov. 7 amid speculation that lower prices would start to attract increased physical purchases, including from central banks. Investor demand for precious metals has waned amid a rally for equities and the dollar and as inflation remained low.
“Draghi’s statement on discussions about buying all assets except gold is putting pressure on prices,” Dean Popplewell, the head analyst in Toronto at the online currency-trading firm Oanda Corp., said in a telephone interview. “We will continue to see people sell gold on rallies.”
In New York, gold futures for February delivery slipped less than 0.1 percent to $1,208.40 an ounce at 9:58 a.m. on the Comex.
Prices are little changed in 2014 after tumbling 28 percent last year. Gains for the U.S. economy have spurred speculation that the Federal Reserve will start raising interest rates, cutting demand for metals, which generally offers investors returns through increasing prices.
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