News events likely to drive Gold's direction: HSBC

NEW YORK (Scrap Monster): Gold is trading near the highs for the recent move and now will be influenced by two important events, the European Central Bank governing council meeting on Thursday and the monthly U.S. jobs report due out Friday, said HSBC in a snippet.

According to HSBC fixed income research, the weakening of the global economy has tipped central banks across much of the developed and emerging worlds back into a policy easing mode as they try to revive flagging economic growth.

“It is not just US Federal Reserve policies that drive gold; policy easing by other important central banks raises global liquidity and is typically gold-bullish. This also supports the notion that the yield curve may steepen in many markets, which also tends to be gold-friendly,” the British bank concluded.