Gold rebounded by more than 1 percent on Thursday as the euro bounced back from a six-week low against the dollar after European Central Bank (ECB) chief Mario Draghi indicated that further interest rate cuts in the euro zone are unlikely.
Both the single currency and bullion prices had fallen earlier in the day after the ECB reduced interest rates and expanded its bond-buying program in an attempt to boost growth and inflation in the currency bloc.
That sent spot gold to a low of $1,237.06 an ounce.It last gained 1.25 percent to $1,268.16. U.S. gold futures for April delivery settled up 1.2 percent at $1,272.80 and last traded at $1,268.90, up 0.91 percent.
The ECB dropped its main refinancing rate to zero on Thursday, from 0.05 percent, while expanding its quantitative easing asset-buying program to 80 billion euros ($88.7 billion) a month from 60 billion euros and cutting its deposit rate to -0.4 percent from -0.3 percent.