SINGAPORE - Gold firmed in a technical rebound on Thursday ahead of a European Central Bank interest rate decision, but weak oil, a firmer US dollar and declines in stock markets weighed.
Gold was trading at $811,15 an ounce, up $0,60 from New York's notional close on Wednesday, when it dropped to a month low of $806,40, partly driven by weak stock markets that forced investors to cash in.
Japan's Nikkei average fell 4,1% after US stocks dropped to six-week lows on worries about a deepening recession and Japanese machinery orders fell a record 16,2% in November from the previous month.
The euro fell against the dollar and yen on Wednesday after a downgrade to Greece's debt rating heightened fears about the eurozone economy and a sharp slide in US retail sales suggested a deepening global slump.
Standard & Poor's move to cut Greece's sovereign debt rating also weighed on the euro, sending it at one point to a near six-week low of 116,58 yen and boosting the chances that the European Central Bank would cut interest rates on Thursday from 2,5% to 2%.
US crude futures steadied on Thursday after dipping overnight when prices were pressured by rising inventories and slumping demand in top oil consumer the US.
Platinum was trading at $925,00 an ounce, down $8,00 from New York's notional close.
New York gold futures added $3,6 an ounce to $812,4 in electronic trade.
