Gold Gains As The Dollar Weakens And Investors Await In The ECB

Gold inched up on Thursday, keeping a bullish tone from the day before when a weaker dollar spurred short-covering and physical buying, but investors were trading cautiously before the European Central Bank's policy decision and U.S. data. Gold prices fell sharply on Tuesday when China's decision to raise bank reserve requirements sparked fears that spending would be curtailed and decrease bullion's appeal as a hedge against inflation. As the dollar remained under pressure, players shifted their immediate focus to the ECB's policy decision and remarks by ECB President Jean Claude Trichet, as well as U.S. retail sales and weekly jobless claims due later in the day. Gold is trading at $1,140 as of 8:15am, GMT, with a bullish trend. Gold's Pool-Position is 91% Long, meaning that most Finotec clients are buying the precious metal.