Gold edges down after record highs; ECB eyed

Gold edged lower on Thursday after hitting record highs in two consecutive sessions, as spreading unrest in the Middle East underpinned safe-haven demand and investors watch for signs of tightening at a European Central Bank meeting later in the day.

Fundamentals

Spot gold edge down 0.2% at USD 1,431.70 an ounce by 0036 GMT, after striking a record high of USD 1,440.10 in the previous session.

US gold futures inched down 0.4% at USD 1,432.40.

Escalating tensions in Middle East and North Africa nations remained in the spotlight.

The European Central Bank is expected to step up tightening rhetoric and may phase out some of its crisis support measures at a meeting later in the day.

Market News

US stocks eked out gains on Wednesday despite another rise in oil prices as investors bet the latest data signaled the economy could absorb expected higher energy costs.

The dollar index held steady on Thursday, as the euro eased slightly from a near four-month high against the dollar and looked set to extend gains on growing expectations of interest rate hikes earlier than the United States.

US crude oil futures rose towards its highest in two and a half years on fears of prolonged supply disruption.

Precious metals prices 0036 GMT

Metal Last Change Pct chg YTD pct chg Volume

Spot Gold 1431.70 -2.79 -0.19 0.86

Spot Silver 34.46 -0.21 -0.61 11.67

Spot Platinum 1843.75 -1.99 -0.11 4.31

Spot Palladium 815.72 -1.00 -0.12 2.03

TOCOM Gold 3778.00 2.00 +0.05 1.31 22275

TOCOM Platinum 4916.00 20.00 +0.41 4.68 8076

TOCOM Silver 90.30 -0.30 -0.33 11.48 547

TOCOM Palladium 2165.00 15.00 +0.70 3.24 229

COMEX GOLD APR1 1432.40 -5.30 -0.37 0.77 1957

COMEX SILVER MAY1 34.49 -0.35 -1.00 11.46 710

Euro/Dollar 1.3860

Dollar/Yen 81.85

TOCOM prices in yen per gram. Spot prices in $ per ounce.

COMEX gold and silver contracts show the most active months.