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Gold under pressure ahead of U.S. jobs report, ECB decision

Published 07/03/2014, 03:21 AM
Gold declines ahead of U.S. jobs data, ECB policy decision
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Investing.com - Gold futures declined in cautious trade on Thursday, as investors looked ahead to key U.S. jobs data later in the day as well as a policy decision by the European Central Bank.

On the Comex division of the New York Mercantile Exchange, gold for August delivery shed 0.54%, or $7.20, to trade at $1,323.70 a troy ounce during European morning hours.

Prices held in a range between $1,320.70 and $1,328.40 an ounce. Gold ended Wednesday’s session up 0.32%, or $4.30, to settle at $1,330.90.

Prices were likely to find support at $1,305.40, the low from June 25 and resistance at $1,339.10, the high from March 21.

Also on the Comex, silver for September delivery slumped 0.96%, or 20.4 cents, to trade at $21.09 a troy ounce.

Traders were in wait-and-see mode before the U.S. government’s monthly nonfarm payrolls report later Thursday, which is expected to show a gain of 212,000 new jobs in June.

The data is being released one day earlier than usual due to the July 4 U.S. Independence Day holiday on Friday.

Payroll processing firm ADP said Wednesday that non-farm private employment rose by a seasonally adjusted 281,000 in June, the highest since November 2012 and easily surpassing expectations for an increase of 200,000.

Investors also looked ahead to the outcome of the European Central Bank’s policy meeting later in the trading day. After unveiling a number of stimulus measures at its June meeting, analysts say the central bank is unlikely to act this time.

Elsewhere in metals trading, copper for September delivery inched down 0.08%, or 0.3 cents, to trade at $3.263 a pound, the highest since February 26.

Copper prices have been well-supported in recent weeks amid growing optimism over the health of the U.S. economy and speculation demand from top consumer China will increase in the near-term.

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