Gold prices up in early Asia in cautious trade ahead of ECB meeting

Investing.com - Gold prices rose margingally in Asia on Thursday in cautious trade ahead of a European Central Bank meeting that will detail the start of an €60 billion a month quantitative easing program.

On the Comex division of the New York Mercantile Exchange, gold future prices for April delivery rose 0.10% to $1,202.10 a troy ounce.

Meanwhile, silver futures for May delivery gained 0.32% to 16.210 a troy ounce.

Elsewhere on Comex, copper for May delivery fell 0.20% to 2.656.

Overnight, gold prices slid down toward $1,200 on Wednesday during a lightly-traded session, hours after India unexpectedly cut its benchmark interest rate.

Earlier on Wednesday, India's central bank lowered its interest rate 0.25% to 7.5%, marking its second rate cut in months. A lower interest-rate is often regarded as a positive sign for gold, as it decreases the price of holding onto the precious metal.

India is the world's largest purchaser of gold.

The move came days after China announced over the weekend that it will be undertaking easing measures with its benchmark interest rate. In combination with India, the two Asian nation account for more than 50% of all gold purchases worldwide.

Trading remained light ahead of the European Central Bank's announcement on Thursday detailing the start of its €60 billion a month quantitative easing program. In China, analysts anticipate that Premier Li Keqiang could lower the nation's economic growth target for the year as the National People's Congress annual meeting opens on Thursday.

Traders in the U.S. also awaited the release of Friday's monthly jobs report for the month of February.

On Wednesday, payroll services firm ADP said in its monthly National Employment Report that the private sector added 212,000 non-farm jobs last month. The amount fell shortly below forecasts of a 220,000 gain. For the month of January, private payrolls were revised upward to 250,000 from a previously reported total of 213,000.