2021.07.2210:22:00UTC+00Gold Hovers Near Two-week Lows

Gold prices dipped on Thursday to reach their lowest in nearly two weeks as equities rebounded on optimism over economic and earnings growth.

The dollar index edged higher ahead of the ECB rate decision later in the day.

Spot gold dropped half a percent to $1,795.26 per ounce, while U.S. gold futures were down 0.4 percent at $1,795.35.

Equity markets rebounded, with European shares returning to near record highs, as investors digested solid U.S. earnings and remained hopeful that the European Central Bank will reiterate its dovish approach to boost the economic recovery.

The ECB meting outcome is due at 1145 GMT, followed by a news conference with its president Christine Lagarde at 1230 GMT.

It is expected that the central bank will maintain its accommodative stance to support the euro area.

The Governing Council is meeting for the first time since the ECB unveiled a tweaked inflation target earlier this month.

The dollar index held steady, hovering below a 3-1/2-month peak ahead of the weekly unemployment claims figures set to be released later in the day.