Reuters reported that gold slipped a touch on a firmer dollar after the European Central Bank said it could cut interest rates further but investors were waiting for US jobs data later in the day for stronger cues.
Fundamentals;
1. Spot gold fell 0.2% to USD 1,246.61 an ounce by 0019 GMT. US gold was down USD 6 to USD 1,245.90.
2. Gold is headed for a weekly gain of about 1.2% compared with 5% drop in the last week.
3. The European Central Bank and the Bank of England left their key interest rates unchanged at regular monthly policy meetings on Thursday.
4. The ECB said THAT it would keep interest rates at record lows for an extended period and may yet cut further, responding to turbulence caused by the U.S. Federal Reserve's exit plan from money printing.
5. Fed Chairman Ben Bernanke last month said the US economy was recovering strongly enough for the central bank to begin pulling back on its stimulus in the next few months, prompting a turmoil in global markets. Gold posted its biggest quarterly loss on record in April to June.
6. The markets are eyeing US nonfarm payrolls data on Friday to determine when the Fed would begin tapering its USD 85 billion monthly bond buying stimulus.
7. Outflows from gold exchange-traded products totalled USD 4.1 billion in June and USD 28.2 billion year to date.
