(RTTNews) - The price of gold edged down Thursday morning as the U.S. dollar was trading weak amid signs the European banking system is healthier than recently feared.
The results of a six-day tender for short-term European Central Bank funds hinted that the region's banks were making good on emergency loans. Yesterday, a three-month offer generated fewer bids than expected.
Gold for August delivery, the most actively traded contract, eased $2.4 to $1,243.5 an ounce.
Yesterday, gold recovered from early trading losses to edge up at the close after a report from the ADP revealed that companies in U.S. hired fewer workers in June.
ADP said that non-farm private employment increased only by 13,000 jobs in June sharply contrasting economists' expectations for an increase of about 61,000 jobs.
Gold futures have gained nearly 12% this quarter, recording their best performance since the third quarter of 2007.
Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund (ETF), were unchanged at a fresh all-time high of 1,320.44 tons.
Meanwhile, the U.S. dollar moved back near its four-week low versus the euro. The single euro-zone currency edged up despite speculation that Spain's debt rating may be downgraded after Moody's Investors Service placed Spain's sovereign debt rating 'on review for possible downgrade' Wednesday citing weak economic prospects. Notably, Spain today raised $4.3 billion in an oversubscribed bond sale.
The greenback was ticking lower against the British pound and slipped to its multi-month low versus the yen in morning deals. Discouraging economic data from the U.S. weighed on the U.S. dollar.
Elsewhere, the prices of silver and platinum ticked lower in morning deals.
Today, traders will look to weekly jobless claims report from the Labor Department, ahead of tomorrow's key government employment report.
Results of the manufacturing survey of the Institute for Supply Management for the month of June are also expected.
The housing market will also be in focus with official data on construction spending and an industry reading on pending home sales.
