Gold price slightly up ahead of ECB meeting Thurs.

New York (Sept 11)  Gold prices are trading modestly higher in midday U.S. action Wednesday, in a choppy, two-sided session. Traders are basically on hold at mid-week, awaiting central bank meetings that are just over the horizon. December gold futures were last up $2.20 an ounce at 1,501.40. December Comex silver prices were last down $0.031 at $18.16 an ounce.

Generally, there remains low risk aversion in the world marketplace at mid-week, which is bearish for the safe-haven metals. China has made a positive overture to the U.S. regarding trade when it said it will exempt certain U.S. products from tariffs for one year. This week the U.S.-China trade tensions have appeared to ratchet down a notch.

Focus is turning to the monetary policy meeting of the European Central Bank on Thursday, at which time the ECB is expected to only very slightly cut interest rates, pushing them further into negative territory. The Federal Reserve meets next week and is expected to cut U.S. interest rates by 0.25%.

The key “outside markets” today see Nymex crude oil prices lower and trading just below $56.00 a barrel. Thursday sees a meeting of the OPEC oil cartel. Oil prices have rallied recently on ideas OPEC nations will continue to constrict their spigots. The U.S. dollar index is solidly higher in midday U.S. trading today.

KItcoNews