2020.06.1810:20:00UTC+00Gold Holds Steady Ahead Of BoE Meeting

Gold prices were little changed on Thursday as the dollar held firm and investors awaited the Bank of England's rate decision for directional cues.

Economists widely expect the monetary policy committee of the BoE to expand its quantitative easing by at least GBP 100 billion from the current size of GBP 645 billion. The interest rate is expected to remain at a record low 0.1 percent.

The BoE is scheduled to release its summary and the minutes of the meeting at 7.00 am ET.

Spot gold was marginally higher at $1,727.88 per ounce, while U.S. gold futures were little changed with a negative bias at $1,734.20 per ounce.

Earlier today, Switzerland's central bank kept its expansionary monetary policy stance, saying it expects the economy to contract the most in over five decades and inflation to remain more negative than forecast earlier this year due to the impact of the coronavirus.

The dollar index held firm against a basket of major currencies as rising number of coronavirus cases in Beijing as well as several U.S. states dampened investor euphoria over the potential economic recovery.

With the road back from recession likely to take some time, Federal Reserve Chair Jerome Powell urged Congress on Wednesday not to pull back too quickly on federal relief for households and small businesses.