LONDON: Gold prices were little changed on Wednesday as technical support on expected dovish monetary policy from central banks offset revived appetite for riskier assets and an upbeat dollar.

Spot gold was down 0.1 per cent at $1,555.73 an ounce at 1322 GMT. US gold futures dipped 0.2pc to $1,555.50.

“We have good support between $1,545 and $1,550, prices are rebounding on this level, confirming strong investor appetite for bullion in this range,” said ActivTrades chief analyst Carlo Alberto De Casa, adding that a risk-on scenario in wider markets could stymie gold’s recovery.

“(Gold) Investors are long because central banks are still dovish. We have potential for the Bank of England and the Australian central bank to cut rates. I don’t see the US Federal Reserve or ECB being hawkish in the next six months either.”

Investors will keep a close eye on the European Central Bank’s first policy meeting of the year on Thursday, while the Fed’s first meeting is scheduled for Jan 28-29.

Elsewhere, palladium gained 0.2pc to $2,405.16 an ounce, having slid by about 4pc in the previous session.

The auto-catalyst metal touched a record high of $2,582.19 on Monday, propelled by a prolonged supply deficit. Silver rose 0.2pc to $17.81 and platinum was up 0.1pc at $1,000.31.

Published in Dawn, January 23rd, 2020