Gold prices inched up on Thursday as the euro rose to 2-week highs against the U.S dollar, with investors waiting for meetings of key central banks and the US-North Korea summit all due next week. Spot gold was up 0.1 percent at $1,297.46 per ounce by 0703 GMT, while US gold futures for August delivery were largely unchanged at $1,301.50 per ounce.
"A strong euro means a weaker dollar, so that's definitely the reason that gold is firm," said Yuichi Ikemizu, Tokyo branch manager at CIBC Standard Bank. "The market is pretty quiet, there is no big factor to make the market move at the moment," Ikemizu said, adding that investors were waiting for events next week.
A Federal Reserve policy meeting and US-North Korea summit are both due next week, while a G7 summit begins this Friday in Quebec. Expectations of higher interest rates and a surge in equities have capped gains in non-interest-paying bullion, which is priced in dollars.
"Despite the very tight trading ranges, we remain cautiously optimistic on gold and see it moving higher over the course of June, although not substantial amounts," INTL FCStone analyst Edward Meir said in a note. Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, fell 0.42 percent to 832.59 tonnes on Wednesday, the lowest in over three-months.
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