Goudprijs stabiel boven $ 1.600 na terugval.......
* Spot gold stabilizes above $1,600/oz after losses Wednesday
* Attention turns to ECB meeting outcome later in global day
* Gold trading below broken trend line at $1,606/oz
Spot gold is a touch higher in Europe Thursday, stabilizing above $1,600 a troy ounce as investors shrug off a noncommittal Federal Open Market Committee statement and turn their attention instead to the outcome of a European Central Bank policy meeting later in the global day.
At 0802 GMT, spot gold was 0.2% higher at $1,601.75/oz. The yellow metal slumped below the psychologically-important $1,600/oz level Wednesday after the FOMC highlighted intensifying concerns over the U.S. economic outlook but didn't outline any new steps to support the economy.
Since gold is often sought as a hedge against currency weakness and inflation at times of heightened liquidity, economic stimulus tends to benefit prices.
The yellow metal will likely take cues from the outcome of the ECB's rate-setting meeting later in the global day, with expectations high that the central bank will announce some stimulus measures, especially after its President Mario Draghi said last week that he will do whatever it takes to preserve the euro.
"Although additional policy accommodations are theoretically bearish for a currency--and therefore also bearish gold--should the euro respond positively to any easing in the hopes that it would help boost the economy, then gold could also rally," said HSBC analyst James Steel.
"Conversely if the ECB does nothing and the euro weakens as a result, gold could be undermined further," he said.
Since gold is priced in dollars, it is more affordable to other currency holders when the greenback softens versus other currencies, such as the euro.
At 0758 GMT, the euro was 0.3% higher versus the dollar at $1.22619.
On a technical basis gold has fallen below its downward trend line, weakening its chart picture. The trend line now sits at $1,606.40/oz, and has been capping gains overnight, noted Liam Roberts of FuturesTechs.
"Our skew is in neutral territory, asking the bulls to retake the trend line, whilst the bears must break below Marabuzo support at $1,591.80/oz-$1,593.60/oz before gaining our backing," said Mr. Roberts. "This is all dependant on the ECB today."
Elsewhere in the precious metal complex Thursday, spot silver was up 0.1% at $27.400/oz, spot platinum was 0.1% higher at $1,397/oz and spot palladium was up 0.2% at $580.90/oz.
By Francesca Freeman