The European Central Bank is set to meet on Thursday when the body is expected to discuss the sovereign debt crisis that has savaged banks and the public finance system – while also driving higher the price of the precious metal. Gold future's record price is $1,923.70 per troy ounce.
"It is extremely hard to see where the solution will come from," analyst Carl Firman with VM Group told Reuters. "I think (officials in the euro zone) will be forced into a solution, but the volatility is based around whether it will be sufficient, or another stop-gap. We need to see some more definitive news, and in the meantime, we will have a hell of a lot of volatility across the markets."
At 7:20 a.m. on Thursday, gold futures gained 0.36 percent, a $5.90 gain to $1,647.50 per troy ounce.
Dow Jones Newswires also noted increasing demand for the precious metal, stating that the demand comes from jewelers. The publication also noted today's interest rate ECB meeting is the final one under the presidency of Jean-Claude Trichet.
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