Investing.com - Gold prices rose on Thursday after the European Central Bank left interest rates unchanged and hiked its 2014 growth forecast, which strengthened the euro and weakened the dollar.
Gold and the dollar tend to trade inversely with one another.
On the Comex division of the New York Mercantile Exchange, gold futures for August delivery were up 1.20% at USD1,415.35 a troy ounce in U.S. trading on Thursday, up from a session low of USD1,391.25 and down from a high of USD1,423.25 a troy ounce.
Gold futures were likely to test support USD1,388.65 a troy ounce, Tuesday's low, and resistance at USD1,444.15, the high from May 14.
The ECB left its benchmark interest rate unchanged at 0.5% and left deposit rates at zero.
ECB President Mario Draghi said the eurozone economy should contract by 0.6% in 2013 compared with a 0.5% contraction forecast made in March.
However, the European monetary authority hiked its 2014 growth forecast to 1.1% from 1.0%, which gave the euro support and brought gold up with it.
Meanwhile in the U.S., the Department of Labor said the number of people who filed for unemployment assistance last week fell by 11,000 to 346,000 compared to expectations for a decline of 12,000 to 345,000.
Jobless claims for the preceding week were revised up to 357,000 from a previously reported increase of 354,000.
The data failed to send waves of optimism through the market a day before the release of the U.S. May jobs report.
Lackluster or disappointing data in the U.S. often weakens the dollar by stoking expectations that the Federal Reserve will keep monetary stimulus programs in place.
Stimulus tools such as the Fed's monthly USD85 billion bond-buying program tend to weaken the dollar to spur recover, which bolsters gold's appeal as a hedge.
Elsewhere on the Comex, silver for July delivery was up 0.93% at USD22.680 a troy ounce, while copper for July delivery was down 1.54% and trading at USD3.320 a pound.
Gold and the dollar tend to trade inversely with one another.
On the Comex division of the New York Mercantile Exchange, gold futures for August delivery were up 1.20% at USD1,415.35 a troy ounce in U.S. trading on Thursday, up from a session low of USD1,391.25 and down from a high of USD1,423.25 a troy ounce.
Gold futures were likely to test support USD1,388.65 a troy ounce, Tuesday's low, and resistance at USD1,444.15, the high from May 14.
The ECB left its benchmark interest rate unchanged at 0.5% and left deposit rates at zero.
ECB President Mario Draghi said the eurozone economy should contract by 0.6% in 2013 compared with a 0.5% contraction forecast made in March.
However, the European monetary authority hiked its 2014 growth forecast to 1.1% from 1.0%, which gave the euro support and brought gold up with it.
Meanwhile in the U.S., the Department of Labor said the number of people who filed for unemployment assistance last week fell by 11,000 to 346,000 compared to expectations for a decline of 12,000 to 345,000.
Jobless claims for the preceding week were revised up to 357,000 from a previously reported increase of 354,000.
The data failed to send waves of optimism through the market a day before the release of the U.S. May jobs report.
Lackluster or disappointing data in the U.S. often weakens the dollar by stoking expectations that the Federal Reserve will keep monetary stimulus programs in place.
Stimulus tools such as the Fed's monthly USD85 billion bond-buying program tend to weaken the dollar to spur recover, which bolsters gold's appeal as a hedge.
Elsewhere on the Comex, silver for July delivery was up 0.93% at USD22.680 a troy ounce, while copper for July delivery was down 1.54% and trading at USD3.320 a pound.