2021.10.2810:25:00UTC+00Gold Little Changed Ahead Of ECB Meet

Gold held steady on Thursday as short-term Treasury bond yields continued their recent assent ahead of key economic data and central bank policy meetings.

Spot gold was marginally higher at $1,797.15 per ounce, while U.S. gold futures were marginally lower at $1,798.45.

Equities traded mixed amid concerns that inflationary pressures will lead to a tighter monetary policy and slow economic growth.

Investors fear that elevated inflation due to an energy crunch and supply-chain disruptions could force central banks to withdraw stimulus measures.

The Bank of Canada terminated its quantitative easing earlier than expected and suggested the possibility of a rate hike in the middle quarters of 2022.

The Bank of Japan maintained its massive monetary stimulus and downgraded its real GDP growth and consumer inflation forecasts.

The Federal Reserve meets next week, and it is widely expected that the U.S. central bank will announce a reduction in bond purchases.

The European Central Bank will announce its interest rate decision at 7:45 am ET. The central bank is expected to hold its main refi rate at a record low zero percent and the deposit rate at -0.50 percent.

In economic releases, U.S. GDP data for the third quarter, weekly jobless claims for the week ended October 23 and pending home sales for September will be published in the New York session.