Precious-Gold was little changed on Thursday, after receiving some support from physical demand from China on Wednesday, where eyes will focus on ECB monetary decision and U.S. data.
The drop to seven-week low this week encouraged some physical buying from the world’s biggest bullion buyer. Volumes for spot contract in Shanghai climbed on Tuesday after hitting its lowest level in two months on March 31.
Data released today from China showed that services sector climbed to a four-month high in March, as PMI reading soared to 51.9 from 51.0 in February.
However, later in the day, the attention will shift to the ECB monetary decision amid expectations the central bank will add new stimulus to push inflation up after it fell to 0.5 percent, marking its lowest since November 2009.
The low inflation in major economies could prompt policymakers to either hold stimulus or even introduce new monetary tools, thereby keeping enhancing gold’s appeal as a safe haven.
Fed Bank of St. Louis President James Bullard said on Wednesday the Fed is ready to hold stimulus reduction if inflation slowed more than forecast.
Fed Chairman Janet Yellen said on Monday the U.S. economy will need to hold stimulus for “some time,” but on March 19, she hinted to the possibility of raising interest rates in six months after the end of bond purchases withdrawal.
As of 12:30 GMT, a U.S. report may show initial jobless claims rose to 319,000 in the week through March 29 from 311,000 a week earlier.
The ADP employment report signaled an acceleration in private jobs growth in March, adding to signs the negative impact of the harsh winter weather has faded.
Utmost attention to be given to tomorrow’s nonfarm payrolls as it is considered the real determinant to the Fed’s stimulus reduction and interest rates outlook.
Meanwhile, gold is traded around $1290.43 an ounce after hitting a high of $1293.72 and a low of $1289.88.
The U.S. dollar inched down against a basket of major currencies, where it is currently hovering around 80.35 after opening at 80.37, according to the dollar index.
Crude oil for May’s delivery was little changed to trade near the session’ opening around $99.21 a barrel.
