Gold fell for a second day as the dollar gained ahead of a key European Central Bank meeting this week.
Bullion for immediate delivery declined as much as 0.8 percent to $1,251.70 an ounce and traded at $1,254.73 by 10:45 a.m. in Singapore, after falling 0.5 percent on Tuesday, according to Bloomberg generic pricing. The metal is up 18 percent this year and entered a bull market last week as demand for haven assets surged amid volatility in financial markets.
Investors are awaiting a monetary policy review from the ECB on Thursday, with meetings of the Bank of Japan and U.S. Federal Reserve due next week. Analysts predict ECB president Mario Draghi is preparing to cut the euro zone’s already negative deposit rate and expand its quantitative-easing program in a bid to boost growth.
Gold is correcting after a “really strong rally over the last few weeks,” and as the dollar rose, David Lennox, an analyst at Fat Prophets in Sydney, said by phone. A gauge of the greenback climbed for a second day, making the metal more expensive in other currencies.
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