Gold price snaps 4-day decline, central bank meetings in focus
Gold inched up on Tuesday to snap four sessions of decline, with investors expecting major central banks to stick to loose monetary policy at meetings this week, supporting bullion's appeal as a hedge against inflation.
But the ongoing exodus from exchange-traded gold funds dragged on prices, with some investors regaining their appetite for riskier assets such as equities as the global economic outlook brightens.
FUNDAMENTALS
Spot gold had inched up 0.1 percent to $1,575.60 an ounce by 0045 GMT.
U.S. gold rose 0.2 percent to $1,575.30.
Janet Yellen, the U.S. Federal Reserve's influential vice chair, said on Monday that the central bank's aggressive monetary stimulus is warranted given how far below its full potential the economy is operating.
A number of central banks will hold policy meetings this week, including the Reserve Bank of Australia, the Bank of Japan, the European Central Bank and the Bank of England. The BOJ and the ECB are both expected to hold steady, while the BOE is seen under mounting pressure to relaunch its bond buying programme.
Holdings of the SPDR Gold Trust, the world's biggest gold-backed exchange-traded fund, fell for the tenth straight session on March 4 to a seven-month low of 1,253.283 tonnes.
MARKET NEWS
U.S. stocks closed higher on Monday as investors staged a late-day rebound, extending a recent trend of buying on dips and pushing major indexes near all-timehighs despite concerns about growth and China's housing market.
The euro languished near a three-month low on Tuesday as investors kept
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