The price of gold was ticking higher Thursday morning as the euro was steady even after the downgrade of Spain's sovereign rating by the rating agency Standard & Poor's
Earlier today, Standard & Poor's Ratings Services downgraded its sovereign ratings on Spain by two notches to the lowest investment grade, citing the mounting risks to public finances from rising economic and political pressures.
Gold for December delivery, the most actively traded contract, added $7.60 to $1,772.70 an ounce. Yesterday, gold ended flat amid euro zone worries and global economic growth concerns with the International Monetary Fund warning on the world economy. The uncertainty over Spain continued with the beleaguered nation still refusing to seek financial aid.
Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, were unchanged at a record high of 1,340.52 tons.
Meanwhile, the U.S. dollar was hovering near its two-week high versus the euro and easing from a monthly high against sterling. The buck was trading flat versus the Swiss franc and the yen.
In economic news from the euro zone, Germany's EU harmonized inflation weakened in September as estimated earlier, final data released by the Federal Statistical Office showed. The harmonized index of consumer prices (HICP) decelerated to 2.1 percent in September from 2.2 percent in August, in line with the preliminary estimates.
The prices of silver and platinum were ticking higher in morning deals.
From the U.S., the Commerce Department will release its trade gap data for August at 8:30 a.m. ET. Economists estimate that the trade gap widened to $44 billion in the month from $42 billion in July
Simultaneously, the Labor Department will release its jobless claims report for the week ended October 06 tat 8:30 a.m ET. Economists expect claims to increase to 370,000 from 367,000 in the previous week.
