Gold prices rose on Wednesday and the euro jumped against the dollar on news that the European Central Bank's policy-setting Governing Council will hold a rare, unscheduled meeting later today to discuss the recent volatility in government bond markets.
Spot gold rose 0.9 percent to $1,825.24 per ounce, while U.S. gold futures were up 0.7 percent at $1,826.50.
European bond yields fell and U.S. Treasury yields also eased ahead of the ECB meeting.
ECB executive board member Isabel Schnabel indicated on Tuesday that the central bank will fight any "disorderly" blowout in the borrowing costs of more indebted euro zone nations.
Investors also awaited the Federal Reserve's interest-rate decision later in the day for clues on how aggressive the U.S. central bank intends to be in the coming months.
The consensus among Fed watchers is that the FOMC will raise its key Fed Funds rate by 50 bps later in the day. A move of 75 basis points would be a surprise, given the deteriorating outlook for growth around the world.
Elsewhere, economists expect another 25-bps rate hike from the Bank of England on Thursday to tame inflation without further hurting growth.
