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Gold Remains Near $1280 Before ECB Meets

Gold fluctuated near a four-month high before European Central Bank policy makers meet to discuss introducing new stimulus as holdings in the largest exchange-traded product expanded the most since 2010.

Bullion for immediate delivery rose and fell at least 0.2 percent, and traded 0.3 percent lower at $1,277.11 an ounce at 9:05 a.m. in Singapore, according to Bloomberg generic pricing. The metal earlier climbed to $1,283, the highest level since Sept. 2, extending the biggest weekly gain since August 2013 as Switzerland’s surprise currency move on Jan. 15 roiled markets and boosted haven demand.

Gold’s rally sent the metal’s 14-day relative-strength index above the level of 70 that signals to some investors that prices may reverse. The Swiss National Bank ended the franc’s cap against the euro before a meeting on Jan. 22 which may see the ECB announce asset purchases as Greece prepares for a Jan. 25 election. Assets in the SPDR Gold Trust rose 1.9 percent to 730.89 metric tons on Jan. 16, the biggest gain since May 2010.

Bloomberg [1]

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