Gold settled unchanged as investors weighed the continuation of stimulus measures by central banks against improving economic data.
European Central Bank policy makers meet tomorrow after President Mario Draghi signaled last month the bank has no intention of tightening monetary policy anytime soon. The U.S. economy expanded at a modest-to-moderate pace across most of the country amid rising consumer demand for homes and autos, the Federal Reserve said in its Beige Book business survey, which is based on reports from the Fed’s 12 regional banks.
“The market needs a clear signal about whether the central banks will continue with their stimulus measures,” Phil Streible, a senior commodity broker at R.J. O’Brien & Associates, said in a telephone interview.
Gold futures for April delivery settled unchanged at $1,574.90 an ounce at 1:37 p.m. on the Comex in New York. The metal rose 0.2 percent to $1,578.30 in electronic trading at 2:20 p.m. after the Beige Book was released.
Earlier, prices rose as much as 0.6 percent and fell as much as 0.5 percent, mainly as Federal Reserve Bank of Philadelphia President Charles Plosser said in a speech today the central bank should slow the pace of its bond purchases.
Silver futures for May delivery increased 0.7 percent to $28.803 an ounce on the Comex, the fourth straight gain.
On the New York Mercantile Exchange, platinum futures for April delivery fell 0.4 percent to $1,579.80 an ounce, the sixth drop in seven sessions.
Palladium futures for June delivery climbed 0.7 percent to $740.05 an ounce, the second straight rise.