Investing.com - Gold held on to small losses on Thursday, as investors digested a mixed bag of U.S. economic data while monitoring developments surrounding Greece's debt.
On the Comex division of the New York Mercantile Exchange, gold futures for April delivery dipped $2.00, or 0.16%, to trade at $1,262.50 a troy ounce during U.S. morning hours.
Prices held in a tight range between $1,259.10 and $1,274.40. A day earlier, gold inched up $4.20, or 0.33% to settle at $1,264.50.
Futures were likely to find support at $1,252.10, the low from January 29, and resistance at $1,286.50, the high from February 3.
The U.S. Department of Labor said the number of individuals filing for initial jobless benefits in the week ending January 31 increased by 11,000 to 278,000 from the previous week’s revised total of 267,000.
Analysts had expected initial jobless claims to rise by 23,000 to 290,000 last week.
A separate report showed that the U.S. trade deficit widened to $46.56 billion in December from $39.75 billion in November, whose figure was revised from a previously estimated deficit of $39.00 billion. Analysts had expected the trade deficit to narrow to $38.00 billion in December.
Traders now 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 234,000 jobs in January, slowing from a gain of 252,000 in December, while the unemployment rate was forecast to hold steady at 5.6%.
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.
Meanwhile, investors remained wary of developments in Greece, after the European Central Bank said it would no longer accept Greek bonds as collateral for lending, shifting the burden on to Greece’s central bank to provide additional liquidity for its lenders and increasing pressure on Athens.
Greece’s government is seeking debt relief on its current €240 billion bailout, which has fuelled fears over a clash with its creditors that could bring about its eventual exit from the euro zone.
Athens main stock index plunged on Thursday, while the yield on Greek 10-Year bonds rose sharply to hover just below the 11%-level.
Also on the Comex, silver futures for March delivery lost 15.2 cents, or 0.87%, to trade at $17.24 a troy ounce. Silver rose 7.4 cents, or 0.43%, to end at $17.39 on Wednesday.
Elsewhere in metals trading, copper for March delivery slumped 2.8 cents, or 1.08%, to trade at $2.563 a pound.
Market sentiment remained subdued despite a surprise move by China's central bank to cut bank reserve requirements on Wednesday, in a bid to boost lending and spur growth.
Meanwhile, crude oil futures remained a source of market volatility on Thursday, with prices turning higher after falling amid fears over a glut in supplies.
Nymex oil futures jumped $1.05, or 2.17%, to $49.50 a barrel, while London-traded Brent prices rallied $1.41, or 2.59%, to $55.57.