The gold price has fallen to its lowest level in nearly a week as a strengthening U.S dollar offset safe haven buying.

The palladium price continues to trade near a 13 year high as investors fear further sanctions against the world’s largest producer, Russia, could hit supply.

Gold is currently trading with a tight range despite geopolitical problems in the Ukraine and the Middle East. Traders are now focusing their attention on Thursdays European Central Bank (ECB) meeting where they expect the bank to outline their response to a faltering economy, low inflation and the slow pace of reform within the 18 member euro zone. Weak economic data and the Ukraine crises has increased the possibility of the ECB adopting policy easing, causing the Euro to fall against the U.S. dollar.

Gold investors will also be looking to the release of latest unemployment data for further indication of the health of the world’s largest economy. Worse than expected data should boost gold appeal.

Traditionally gold outperforms traditional assets in times of political and financial instability.

Gold is currently trading at £770.69 per ounce, silver £11.70 per ounce, platinum £856.86 per ounce and palladium £546.58 per ounce.