The price of gold was easing from its six-month high Wednesday morning as traders await a key meeting of the European Central Bank this week.
Gold for December delivery, the most actively traded contract, eased $2.30 to $1,693.70 an ounce. Yesterday, gold settled at a 6-month high as investors continued to expect further quantitative easing measures from the European Central Bank ahead of its policy meeting Thursday. There was optimism of a fresh bond-buying program after media reports said the ECB Chief Mario Draghi believed purchases with maturities up to three years would be within the bank's mandate.
Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, moved up to 1,293.14 tons from 1,289.52 tons.
Meanwhile, the U.S. dollar was lingering around its two-month low versus the euro and near a two-week low against sterling. The buck was leveling off from a three-week low versus the yen, while trading flat against the Swiss franc.
In economic news, euro zone's private sector contracted more than initially estimated in August, data from a survey by Matkit Economics showed. The seasonally adjusted composite output index, designed to measure activity in both the manufacturing sector and the service sector, dropped to 46.3 in August from 46.5 in July. The index was initially estimated to rise to 46.6.
Meanwhile, data released by Eurostat showed retail sales in euro zone declined 0.2 percent month-on-month in July, in line with economists' forecast. This followed a 0.1 percent increase in June. On an annual basis, sales fell 1.7 percent in July. This was also in line with forecast.
The prices of silver and platinum were moving lower in morning deals.
From the U.S., the Labor Department is scheduled to release its final report on second quarter non-farm productivity and unit labor costs at 8:30 a.m. Economists expect productivity growth to be upwardly revised to 1.9 percent, while unit labor costs are expected to have increased at a downwardly revised rate of 1.4 percent.
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Market Analysis
May 15, 2026 15:25 ET Apart from the confirmation of Kevin Warsh as the next Fed chair, the main news on the economics front this week included key price data from the U.S. and the first quarter economic growth figures from major economies. Both consumer prices and producer costs have started to reflect the effect of supply shocks due to the Middle East conflict. In Europe, GDP data was in focus, while inflation data from China dominated the news flow in Asia.