Gold traded near a five-month high before a meeting of European Central Bank policy makers as the metal priced in euros rose to the highest level since 2013 and assets in the largest exchange-traded product expanded a third day.
Bullion for immediate delivery was little changed at $1,294.05 an ounce at 9:18 a.m. in Singapore, according to Bloomberg generic pricing. The metal advanced on Jan. 20 to $1,297.23, the highest level since Aug. 20, sending the 14-day relative-strength index to 73.4, which signals to some investors that prices may reverse.
Gold climbed to 1,122.88 euros an ounce, the highest price since May 2013, as the ECB may announce asset purchases on Jan. 22, further weakening the common currency that’s already near an 11-year low. While diverging monetary policies have driven the Bloomberg Dollar Spot Index to a 10-year high, a slump in commodity prices has raised speculation that the Federal Reserve may hold back from increasing its key rate as inflation fails to rise above the central bank’s 2 percent target.
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