Gold gains ground, dollar edges up ahead of Draghi's speech

Gold futures rose in American trade away from six-month lows, while the dollar index traded flat near seven-month highs, after US housing data and ahead of speeches by Fed governors later today, while ECB President Mario Draghi readies to deliver opening remarks at the ECB Forum on Central Banking, in Portugal.

As of 01:58 GMT, gold futures due on August 15 rose 0.37% to $1,283.20 an ounce from the opening of $1,278.50, while the dollar index inched up 0.06% to 94.85 from the opening of 94.79. 

The US NAHB Housing Market Index inched down to 68 in June from 70 in May, as analysts now await Federal Reserve Bank of Atlanta President Raphael Bostic's speech about the economic outlook and monetary policy at the Rotary Club of Savannah.

Federal Reserve Bank of San Francisco President John Williams is due to deliver closing remarks at a conference on banking culture, hosted by the Federal Reserve Bank of New York, after the Federal Open Market Committee voted this week to raise interest rates by 25 basis points to below 2.00%. 

Now markets await the European Central Bank forum on central banking later today, with high-profile officials participating from around the globe, such as ECB President Draghi, Fed Chair Jerome Powell, Bank of Japan governor Haruhiko Kuroda. 

World Gold Council 

Recently, the World Gold Council reported a 7% drop in global demand in the first quarter of 2018 to 973.5 tonnes, the lowest since the first quarter of 2008, as investments fell 27% on the precious metal to 287 tonnes from 383 tonnes in the first quarter of 2017. 

Central banks' gold demand rose 42% to 116.5 tonnes, especially from Russia, while jewelry demand steadied at 487.7 tonnes, as mine supplies grew 1% y/y to 770 thousand tonnes. 

Gold holdings at SPDR Gold Trust, the world's largest gold-backed investment fund, remained unchanged on Friday for the fifth straight session at 828.76 tonnes, the lowest since February 16, after rising 3%, or 23.63 tonnes in 2017, while gold prices rose 13% last year.