WASHINGTON (dpa-AFX) - Gold prices were flat to slightly higher on Thursday as investors awaited the outcome of a European Central Bank (ECB) policy meeting later in the day, followed by the U.S. Federal Reserve next Tuesday-Wednesday.
Spot gold edged up 0.1 percent to $1,426.60 per ounce while U.S. gold futures were up 0.2 percent at $1,426.65.
The ECB is seen cutting rates by 10 basis points as growth in the region falters. It is expected that the policy statement and subsequent press conference will contain a dovish bias.
Meanwhile, the U.S. Federal Reserve is expected to oblige markets with a 25 bps interest rate cut when its Federal Open Market Committee meets for two days on July 30-31.
The euro sank to a new two-month low against the dollar after data from Ifo Institute showed the German business confidence weakened more-than-expected in July.
The business climate index fell to 95.7 in July from revised 97.5 in June. The score was forecast to fall to 97.2. The initial reading for June was 97.4.
On the trade front, top U.S. officials will travel to China next week for the first face-to-face negotiations on a trade deal since talks broke down last May.
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