Gold remained above a three-week low on Thursday, as the dollar and European shares fell after the European Central Bank left key interest rates unchanged, but better-than-expected U.S. jobs data weighed.
Gold prices were nearly flat in Asia on Friday win a light regional data day with investors now looking ahead to the Federal Reserve for its views on rates following indications the U.S. economy is chugging along as expected despite Brexit.
The ECB held rates at record lows as it seeks to revive growth and inflation with cheap credit to the economy. It added that it still expects its key interest rates to remain at present or lower levels for an extended period.
The U.S. Federal Reserve will wait until the fourth quarter before raising interest rates, likely in December after the presidential election, according to a Reuters poll which once again showed subdued inflation expectations.
Just over half the 100 economists surveyed over the past week expect the Fed to raise its federal funds rate in the fourth quarter to 0.50-0.75 percent from 0.25-0.50 percent currently. The move is most likely to come in December as the November policy meeting is only days ahead of the Nov. 8 election, forecasters said.
Reference: Reuters, Investing
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