Gold prices were trading in the flat line on Thursday, retaining gains from the previous two days as investors eye the European Union summit for fresh leads. Data showed a slowing China economy for the seventh quarter as expected.
The European leaders will meet for a two-day discussion amid talks about a Spanish bailout in the following month as an attempt to strengthen the bloc’s shaky foundation.
Gold has impacted the moves in the foreign exchange market, with improving sentiment around the euro zone giving support to the euro and weighing in the dollar. This has made dollar-priced commodities more appealing for investors holding other currencies.
Spot gold traded nearly flat at USD 1,750 an ounce level by 0320 GMT, not participating in today’s USD weakness. US gold was little changed at USD 1,751.50 and OIL/USD was put aside pulling back just below $92 a barrel.
The net length in US gold reached a 14-month high of 198, 194 contracts last week which has more than doubled from the current year’s low in late July.
Meanwhile, gold-backed ETFs stood at 74.804 million ounces from a 75.03 million ounces last week, indicating positive investment demand in gold.