Investing.com - Gold prices inched higher on Thursday, as market players looked ahead to the outcome of the European Central Bank's policy meeting later in the trading day.
The ECB was widely expected to leave monetary policy on hold after recent data showed that the annual rate of inflation in the euro zone ticked up to 0.7% in April from a record low 0.5% in March.
On the Comex division of the New York Mercantile Exchange, gold for June delivery held in a range between $1,287.50 a troy ounce and $1,292.50 an ounce.
Gold last traded at $1,291.40 an ounce during European morning hours, up 0.19%, or $2.50. Futures lost 1.51%, or $19.70 on Wednesday to settle at $1,288.90, the lowest since May 2.
Gold prices were likely to find support at $1,272.00 an ounce, the low from May 2 and resistance at $1,315.00, the high from May 7.
Gold tumbled on Wednesday as concerns that Ukraine will descend into civil war eased after Russian President Vladimir Putin called on separatists in the eastern reaches of the country to postpone their referendum on independence, and added that Russia had withdrawn its forces from the border.
Putin stressed that Russia will do "all it can" to resolve the crisis and will take a "most positive" approach to international peace efforts.
Meanwhile, Federal Reserve Chair Janet Yellen said Wednesday that a high degree of monetary accommodation remains warranted given the slack in the economy.
Yellen also said the Fed expects economic growth to accelerate this year despite the slowdown in the first quarter but warned that the recent housing market slowdown "could prove more protracted than currently expected."
Yellen will now testify to the Senate Budget committee in Thursday's trading session.
Also on the Comex, silver for July delivery inched down 0.33%, or 6.4 cents, to trade at $19.27 a troy ounce. Silver ended Wednesday's session down 1.54%, or 30.3 cents, to settle at $19.34 an ounce.
Elsewhere in metals trading, copper for July delivery rose 0.09%, or 0.3 cents, to trade at $3.035 a pound.
Data released earlier showed that China's trade surplus widened to $18.45 billion in April from a surplus of $7.7 billion in March, compared to estimates for a surplus of $13.9 billion.
Chinese exports climbed 0.9% from a year earlier, beating expectations for a 1.7% decline and following a 6.6% drop in March. Imports rose 0.8%, compared to forecasts for a 2.3% decline and after plunging 11.3% in the previous month.
The robust data helped ease concerns over the health of the world's second largest economy.
The Asian nation is the world's largest copper consumer, accounting for almost 40% of world consumption last year.
