(RTTNews) - The price of gold was firm near its three-month high Wednesday morning amid hopes that the European Central Bank will take steps to reduce borrowing costs for Spain and Italy.
Gold for December delivery, the most actively traded contract, edged down $2.30 to $1,640.60 an ounce. Yesterday, gold extended its three-month high as the dollar weakened while the euro strengthened on optimism over the euro zone debt problem with expectations that the European Central Bank would step up efforts to prop-up the weaker economies of the single currency bloc.
Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, moved up to 1,278.96 tons from 1,274.74 tons.
Meanwhile, the U.S. dollar was lingering near a two-month low versus the euro and the Swiss franc, while slipping back near a three-month low against sterling. The buck was hovering around a 5-week high versus the yen.
The prices of silver and platinum were moving higher in morning deals.
In economic news from the U.S., the National Association of Realtors will release its report on existing home sales for July at 10 am ET. Economists estimate existing home sales of 4.50 million for the month compared to a 4.37 million-unit rate for June.
The Federal Reserve is due to release the minutes of its July 31st-August 1st meeting at 2 pm ET.
