SINGAPORE (Reuters) - Gold inched up on Thursday as investors await the Fed chairman's comments due later in the day, hoping for hints of new easing measures in the light of weak economic data and the euro zone crisis.
Investors will scrutinise U.S. Federal Reserve Chairman Ben Bernanke's testimony in front of a congressional committee for intent to further ease money supply, which would buoy gold's appeal as a hedge against inflation down the road.
Bernanke's testimony is due a day after the European Central Bank resisted pressure to undertake any immediate stimulus, nonetheless left rates steady and expressed concerns on increasing headwinds the single currency bloc faces.
"People have become more bullish after last Friday's employment figures. The market may be entering a new phase on the expectation that there will probably be some sort of easing," said Yuichi Ikemizu, head of commodity trading, Japan, at Standard Bank.
Gold has held around the $1,620 level since surging more than 4 percent last Friday after disappointing U.S. employment data shook investors' confidence in the economic recovery and fuelled hopes for more easing.
Spot gold edged up 0.2 percent to $1,620.16 an ounce by 0302 GMT, not too far off the one-month high of $1,640.50 reached in the previous session.
U.S. gold futures contract for August delivery lost 0.8 percent to $1,621.80.
The euro edged lower against the dollar, after jumping sharply in the previous session after the ECB left rates and economic outlook unchanged.
Germany and European Union officials are urgently exploring ways to rescue Spain's debt-stricken banks although Madrid has not yet requested assistance and is resisting being placed under international supervision.
Investors will watch the Greek elections on June 17 and a Group of 20 meeting on June 18-19 to gauge whether there is political will in Greece to stay within the euro zone and what actions will be undertaken to fight the bloc's debt crisis.
Flow in Asia's physical gold market was sluggish, as market participants await a clear trend, especially as seasonal demand is low.
"For the jewellery market, May to July is a quiet season and there is no significant demand from industrial users either," said Dick Poon, manager of precious metals at Heraeus in Hong Kong.
Spot silver lost half a percent to $29.23, after jumping more than 3 percent and hit a one-month high of $29.88 in the previous session.
