The gold price rose yesterday as physical buying in Asia boosted demand. Despite yesterday’s advance the gold price is currently hovering near a two and a half month low. Traders are now focusing their attention towards this afternoon’s European Central Bank (ECB) meeting to see if the bank will initiate a new stimulus program. The ECB is coming under increased pressure to revive a sluggish Euro Zone economy.

Further stimulus should be positive for gold, however, the likely beneficiary will be the U.S dollar which in turn could be potentially negative for the gold price. The gold price is also likely to effected by U.S. unemployment data which is due be released at the end of next week.

The world’s largest gold backed exchange traded fund, The SPDR Gold Trust, which is often used as a barometer of investor sentiment, confirmed its holdings fell yesterday by 2.69 tonnes to 790.61 tonnes.

Gold is currently trading at £771.86 per ounce, silver £11.66 per ounce, platinum £858.02 per ounce and palladium £534.44 per ounce.