Investing.com - Gold prices held steady in cautious trade on Thursday, as investors stuck to the sidelines ahead of the release of upcoming U.S. economic data and a policy meeting by the European Central Bank later in the day.
On the Comex division of the New York Mercantile Exchange, gold for June delivery held in a tight range between $1,289.80 a troy ounce and $1,294.20 an ounce.
Gold last traded at $1,291.30 an ounce during European morning hours, up 0.04%, or 50 cents. Futures rallied 0.84%, or $10.80 an ounce, on Wednesday to settle at $1,290.80.
Gold futures were likely to find support at $1,277.40 a troy ounce, the low from April 1 and resistance at $1,299.30, the high from March 31.
Market players looked ahead to key U.S. economic data later in the day for further indications on the strength of the economy and the future course of monetary policy.
The U.S. is to publish the weekly report on initial jobless claims as well as a report on service sector activity. Investors were also beginning to turn their attention to Friday's highly-anticipated nonfarm payrolls data.
On Wednesday, payroll processing firm ADP said non-farm private employment rose by a seasonally adjusted 191,000 in March, adding to hopes that the slowdown in economic activity seen at the start of the year would be temporary.
Comex gold prices have been under heavy selling pressure in recent weeks as upbeat U.S. economic data underlined expectations that the Federal Reserve will begin to raise rates sooner than previously thought.
Traders will also be awaiting the outcome of the ECB's policy meeting later Thursday, amid growing concerns over the threat of deflation in the region.
Meanwhile, silver for May delivery eased down 0.05%, or 0.1 cents, to trade at $20.04 a troy ounce. Silver ended Wednesday's session up 1.84%, or 36.2 cents, to settle at $20.05 an ounce.
Elsewhere on the Comex, copper for May delivery dipped 0.09%, or 0.3 cents, to trade at $3.036 a pound.
China's State Council said Wednesday that it will increase spending on railways and housing, as policymakers attempt to boost slowing growth in Asia's largest economy.
The Asian nation is the world's largest copper consumer, accounting for almost 40% of world consumption last year.
