Early on Wednesday, gold prices are trading close to the lowest levels in four weeks as markets trade cautiously before the upcoming ECB meeting. At the time of writing, GOLD is trading at a little above $1,490.

The precious metal’s gains remain capped over a cautious market that awaits news on ECB’s rate cut and other easing measures, as well as news on Germany’s plans for fiscal stimulus to revive its economy. On the trade war front, although US and China trade teams have confirmed their plans to meet in Washington next month, updates from the US point to a delay in any kind of resolution.

Gold traders are hesitant to enter new positions as they wait to see what measures ECB will announce at its meeting tomorrow in order to support the weakening US economy. In addition, markets are trading somewhat optimistic after Germany’s 30-year bond yields turned positive for the first time in more than a month.