Sure, interest rates are negative, but so are some prices, and when you look around, they're everywhere
Gold steadies near 1-week peak on weaker greenback, investors eye ECB policy meet
Gold prices held firm near a 1-week peak hit in the prior session as the dollar weakened, while markets awaited the European Central Bank's monetary policy decision due later in the day.
Spot gold was trading 0.05 percent up at $1,946.80 per ounce by 0727 GMT, having hit a low of $1906.62 on Tuesday, its lowest since August 12. U.S. gold futures trades flat at $1,954.55.
Asian shares surged following a bounce on Wall Street, while investors eagerly awaited the ECB policy decision followed by a news conference from President Christine Lagarde.
The European Central Bank is all but certain to keep policy unchanged later in the day but investors will gauge policymakers views on euro's recent rally and its impact on inflation and economic growth.
On Wednesday, the euro rebounded from a near 1-month low after Bloomberg News reported that European Central Bank officials are growing more confident in the block's economic outlook.
The dollar index retreated from a 4-week peak against its rivals, dragged lower by the U.S. Federal Reserve's strategy shift to a more tolerant stance on inflation. Markets also await the U.S. central bank's two-day meeting set next week for further insights on the monetary policy outlook.
Moreover, resurgence of coronavirus infections in several countries and concerns about worsening diplomatic ties between Australia and China over the treatment of the two Australian journalists further dented risk sentiment.
The Australian Financial Review's Michael Smith and Bill Birtles from the ABC were rushed out of China this week, having sheltered in Australian diplomatic premises for several days following visits from Chinese state security officers to their homes.
The greenback against a basket of currencies traded 0.1 percent down at 93.15, having touched a high of 93.66 on Wednesday, its highest since August 12. The U.S. Treasury yields declined, with the benchmark 10-year note yield trading at 0.684 percent.