Gold futures inched higher in Asia trading hours on Thursday, extending an advance made from the previous session, with investors hoping that an upcoming policy meeting at the European Central Bank might prove supportive for the precious metal. Gold futures for delivery in April rose $1.20 to $1,680.00 an ounce in electronic trading. The contract had risen $5.30, or 0.3%, to settle at $1,678.80 an ounce on the Comex division of the New York Mercantile Exchange Wednesday, buoyed by weakness in U.S equities and ahead of a policy meeting at the European Central Bank. The ECB is widely expected to leave its key lending rate unchanged at a record low 0.75% on Thursday, and most strategists expect ECB president Mario Draghi to maintain the ECB's typical disdain for currency intervention at his later press conference. Read: Draghi unlikely to take up arms in currency war. Still, the euro may see some movement as the events wrap up, which could impact gold prices, according to HSBC metal strategists. “If ECB president Mario Draghi offers no resistance to further euro gains after the policy meeting, the markets may heed to this and take the euro-dollar higher," they said. “A stronger euro may lend some support for bullion, in our view." Central bank action in Japan may also support gold, HSBC believes, if the Bank of Japan pursues an even-looser monetary policy. This week, Bank of Japan Gov. Masaaki Shirakawa said he would step down from his post on March 19, a few weeks ahead of the end of his term, to coincide with the departure of two deputy governors. Analysts said the news likely means an accelerated and potentially more wide-ranging policy-easing plan will emerge from the Japanese central bank. “Bullion is historically sensitive to global monetary policy stimulus and expectation of further accommodations by the BoJ is gold positive, we believe," the HSBC analysts said Thursday. Silver futures for delivery in March declined 2 cents to $31.86 an ounce and copper futures for delivery in the same month traded flat at $3.75 a pound. April platinum rose $3.10 to $1739.60 an ounce, while March palladium futures fell 90 cents to $763.90 an ounce. Marketwatch
