Investing.com - Gold was little changed on Wednesday, as traders looked ahead to the upcoming European Central Bank meeting as well as key U.S. employment data later in the week.
On the Comex division of the New York Mercantile Exchange, gold futures for April delivery ticked up 20 cents, or 0.02%, to trade at $1,204.60 a troy ounce during European morning hours. Prices held in a tight range between $1,202.90 and $1,208.50.
Futures were likely to find support at $1,194.60, the low from March 3, and resistance at $1,223.00, the high from March 2.
A day earlier, gold dipped $3.80, or 0.31%, to settle at $1,204.40 an ounce as a broadly stronger U.S. dollar dampened the appeal of the metal.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was flat at 95.45 early on Wednesday, after hitting a five-week high of 95.58 on Tuesday.
The greenback remained supported amid expectations for higher interest rates in the U.S.
Meanwhile, the euro was likely to remain under pressure as investors turned their attention to the upcoming European Central Bank meeting on Thursday, when it was expected to announce details of its quantitative easing program.
Traders also looked ahead to the release of the latest U.S. nonfarm payrolls report on Friday, for further indications on the strength of the recovery in the labor market.
Market analysts expect the data to show that the U.S. economy added 240,000 jobs in February, slowing from a gain of 257,000 in January, while the unemployment rate was forecast to decline to 5.6% from 5.7%.
A strong U.S. nonfarm payrolls report was likely to add to speculation over when the Federal Reserve will begin to raise interest rates, while a weak number could boost gold by undermining the argument for an early rate hike.
Expectations of higher borrowing rates going forward is considered bearish for gold, as the precious metal struggles to compete with yield-bearing assets when rates are on the rise.
Meanwhile, silver futures for May delivery dipped 2.9 cents, or 0.18%, to trade at $16.26 a troy ounce. On Tuesday, silver slumped 15.5 cents, or 0.94%, to close at $16.29 an ounce.
Elsewhere on the Comex, copper for May delivery inched down 0.4 cents, or 0.17%, to trade at $2.652 a pound as concerns over the health of China's economy dampened demand for the red metal.
The Asian nation is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.