Gold prices break losing streak, move higher as investors await rate cut at ECB meet

On September 11, gold prices moved higher after having been on a losing streak on technical buying for four days. Meanwhile, investors are waiting for European Central Bank's meeting as a cut in interest rates is strongly expected.

As of 9:44 am IST, spot gold was up 0.3 percent at $1,490.09 per ounce. Gold prices was at their lowest since Aug. 13 at $1,483.90 in the previous session.

US gold futures did not have much change at $1,498.8 an ounce.

"The ECB is expected to reduce further the interest rate into negative territory... The meeting could serve as a potential catalyst (for gold) and investors are already buying into the rate cut expectations," said Margaret Yang Yan, a market analyst at CMC Markets.

Given that gold has had such a deep correction from its recent peak, investors are buying on dips, Yan added.

Bullion prices have shed more than 4 percent, or over $60, in less than a week, mainly hurt by a broad uptick in risk appetite.

ECB policymakers are leaning toward a package that includes a rate cut, a pledge to keep rates low for longer and compensation for banks over the side-effects of negative rates, five sources familiar with the discussion said last week.

The US Federal Reserve is also widely expected deliver an interest rate cut next week.

"The big picture is global central banks are willing to lower interest rates and even carry out more quantitative easing to spur growth... In the mid to long term view, lower interest rate environment is bullish for gold price," Yan said.