Gold prices rose slightly in cautious trade Thursday after seeing their biggest daily decline in a month the previous day amid signs of an economic recovery from the coronavirus pandemic.
Spot gold rose 0.6 percent to $1,709.99 per ounce, after having fallen 1.7 percent on Wednesday. U.S. gold futures were up half a percent at $1,713.75.
While economic optimism prevails, gold is benefiting from the historic civil unrest in the United States, stimulus expectations and rising U.S.-China tensions.
Late Wednesday, the German coalition government agreed to a ?130 billion ($211 billion) stimulus package to help Europe’s biggest economy recover from the coronavirus crisis.
Attention now shifts to a European Central Bank (ECB) policy meeting later today, with the central bank widely expected to ramp up emergency bond purchases to support the region’s battered economies.
The ECB will also publish its new economic forecasts. ECB President Christine Lagarde will hold a press conference at 8.30 am ET.
U.S. reports on weekly jobless claims and the U.S. trade deficit may attract attention later today, while the Labor Department’s monthly jobs report due on Friday is expected to show unemployment soaring to a post-World War Two high.