Gold fluctuated near a four-month high before European Central Bank policy makers meet to discuss introducing new stimulus as holdings in the largest exchange-traded product expanded the most since 2010.

Bullion for immediate delivery rose and fell at least 0.2 percent, and traded 0.3 percent lower at $1,277.11 an ounce at 9:05 a.m. in Singapore, according to Bloomberg generic pricing. The metal earlier climbed to $1,283, the highest level since Sept. 2, extending the biggest weekly gain since August 2013 as Switzerland™s surprise currency move on Jan. 15 roiled markets and boosted haven demand.

Gold™s rally sent the metal™s 14-day relative-strength index above the level of 70 that signals to some investors that prices may reverse. The Swiss National Bank ended the franc™s cap against the euro before a meeting on Jan. 22 which may see the ECB announce asset purchases as Greece prepares for a Jan. 25 election. Assets in the SPDR Gold Trust rose 1.9 percent to 730.89 metric tons on Jan. 16, the biggest gain since May 2010.

Source : Bloomberg