AMSTERDAM: Gold prices firmed on Thursday after three straight sessions of losses as the dollar rally paused and investors’ focus turned to the European Central Bank’s meeting which is expected to signal a tapering of its emergency economic support.

Spot gold rose 0.3% to $1,794.17 per ounce by 0905 GMT, bouncing off a two-week low touched on Wednesday.

US gold futures were up 0.2% at $1,796.70.

Gold got a slight fillip as the dollar index edged down , while the euro eked out gains amid expectations the ECB may reduce the pace of bond buying.

“At the moment, gold is being driven by the dollar... but what (ECB President) Christine Lagarde announces could have a bigger influence on gold prices than the dollar today,” said Michael Hewson, chief market analyst at CMC Markets UK.

Gold tends to gain in a low interest-rate environment, while some investors also view bullion as a hedge against higher inflation that could follow stimulus measures. It also competes with the dollar as a safe store of value in times of uncertainty.

But bullion has been losing its shine as a safe haven, with risk aversion favouring the US dollar of late, Han Tan, Chief Market Analyst at Exinity Group said, adding that gold was still being largely driven by the greenback’s reaction to the US Federal Reserve’s tapering outlook.

The Fed reported on Wednesday that the US economy “downshifted slightly” in August amid a renewed COVID-19 surge.

But potentially offsetting any inflows into gold from the outlook, several policymakers signalled that the Fed remains on track to trim asset purchases this year.

Focus was also on weekly US initial jobless claim data at 1230 GMT, given the Fed’s recent emphasis on the labour market health being an important determinant to tapering strategy.

Silver rose 0.4% to $24.06 per ounce, while platinum gained 0.2% to $981.34. Palladium was up 0.2% at $2,255.52.