Gold News

Weaker dollar 'means bullish gold'

Potential investors in gold are eagerly awaiting news from the European Central Bank (ECB), which is expected to reveal clues on future monetary policy this week.

Analysts believe it could raise interest rates by a quarter of a point, supporting the euro against the dollar and therefore providing support to gold prices.

Standard Chartered analyst Dan Smith told Reuters: "If the ECB is flagging up its worries about inflation much more than growth, the euro's going to be stronger and the dollar's going to be weaker, which will be bullish for gold."

He added that the troubled stock market could encourage gold investment as people lose confidence in currency-related assets.

The ECB is one of the world's most important central banks, responsible for monetary policy covering the 15 member countries of the eurozone. It was established by the European Union in 1998, with its headquarters situated in Frankfurt, Germany.

Standard Chartered is listed on the London Stock Exchange and the Hong Kong Stock Exchange and is among the top 25 constituent members of the FTSE 100 Index.

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