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Gold fluctuates near 18-week low ahead of ECB decision

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Investing.com -

Investing.com - Gold prices swung between small gains and losses near an 18-week low on Thursday, as investors looked ahead to the European Central Bank's highly-anticipated policy meeting later in the day

On the Comex division of the New York Mercantile Exchange, gold for August delivery traded in a narrow range between $1,242.00 and $1,245.00 a troy ounce. Prices last traded at $1,244.60 during European morning hours, up 0.03%, or 30 cents.

Gold declined 0.02%, or 20 cents, on Wednesday to settle at $1,244.30. Prices hit an 18-week low of $1,240.20 on June 3.

Prices were likely to find support at $1,237.50 an ounce, the low from January 30 and resistance at $1,251.00, the high from June 2.

Market analysts expect the ECB to lower its benchmark interest rate to a record-low 0.1% from the current 0.25% and launch a package of other stimulus measures at the conclusion of its policy meeting later Thursday as a way to bolster low levels of inflation and sluggish growth.

Meanwhile, ongoing indications that the U.S. economy is shaking off the effects of a weather-related slowdown over the winter continued to weigh on appetite for the precious metal.

The Institute of Supply Management on Wednesday said its non-manufacturing index rose to a nine-month high of 56.3 in May, from a reading of 55.2 the previous month, compared to expectations for a rise to 55.5.

The upbeat data overshadowed a report from payroll processing firm ADP, which said non-farm private employment rose by 179,000 in May, below expectations for an increase of 210,000.

Traders awaited Friday's report on U.S. nonfarm payrolls for further indications on the strength of the U.S. job market after a data on Wednesday showed that private sector jobs rose less than expected last month.

The precious metal has been under heavy selling pressure recently as investors bet on strong economic growth in the U.S. during the second quarter.

Also on the Comex, silver for July delivery inched up 0.04%, or 0.8 cents, to trade at $18.80 a troy ounce.

Elsewhere in metals trading, copper for July delivery added 0.41%, or 1.3 cents, to trade at $3.106 a pound.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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