Investing.com - Gold prices were little changed in European trade on Tuesday, as investors assessed the possibility of more monetary easing by global central banks.
Gold for August delivery on the Comex division of the New York Mercantile Exchange inched up $1.65, or 0.12%, to trade at $1,330.85 a troy ounce by 06:56GMT, or 2:56AM ET. A day earlier, prices tacked on $1.90, or 0.14%.
Gold has been drawing support from growing expectations that central banks around the world will step up monetary stimulus in the near-term to counteract the negative economic shock from the Brexit vote.
Market players looked ahead to the outcome of Thursday’s European Central Bank meeting to see if policymakers will step up monetary stimulus in wake of Britain's vote to exit the European Union.
The consensus is that the central bank will leave interest rates on hold, while ECB President Mario Draghi is forecast to strike a dovish tone and perhaps hint at further stimulus to offset the hit to the economy from Britain's decision to leave the EU.
Traders are also focusing on whether the Bank of Japan will expand its monetary stimulus at its policy meeting later this month. The yen has been pressured by expectations that a double-bazooka of fiscal and monetary easing was on the cards in the weeks ahead.
Investors are also wagering on a rate cut from the Bank of England in August, while few see much chance of the Federal Reserve hiking U.S. rates anytime soon.
Expectations of monetary stimulus tend to benefit gold, as the metal is seen as a safe store of value and inflation hedge.
The precious metal is up almost 25% for the year to date, boosted by concerns over global growth and as market players pushed back expectations for the next U.S. rate hike.
Also on the Comex, silver futures for September delivery shed 9.2 cents, or 0.46%, to trade at $19.98 a troy ounce during morning hours in London, while copper futures slumped 0.3 cents, or 0.13%, to $2.234 a pound.