Gold Dips On Dollar Strength, Cenbank Meetings In Focus

Investors now await the outcome of the European Central Bank’s policy meeting, due on Thursday. While no major policy moves are expected since it has acted aggressively to shore up the virus-hit economy, investors will watch out for its inflation forecasts.

Gold is used as a hedge against inflation and currency debasement.

The Bank of Canada’s policy meeting is also on Wednesday, while the U.S. Federal Reserve’s meeting is scheduled for next week.

On the technical front, spot gold is expected to retest a support at $1,906 per ounce, a break below which could cause a fall to $1,880, said Reuters technical analysts Wang Tao.