Precious-Gold traded near its lowest level in four month on Wednesday as investors preferred to remain sidelined before the release of important U.S. data.
Eyes will focus today on U.S. ADP employment report as it will give an indication about the health of the labor market before the release of the infamous jobs report on Friday.
Private-sector employers probably hired 210,000 last month after gaining 220,000 a month earlier.
Economists predict the non-farm payrolls to show that U.S. employers added more than 200,000 jobs for a fourth straight month in May.
Later in the day, the U.S. will also release ISM non-manufacturing for May and the Federal Reserve Beige Book.
Gold buyers will also watch carefully the ECB monetary decision amid expectations the central bank will introduce new measures to stave off the current low inflation.
Meanwhile, there is some optimism by investors after the release of a wave of upbeat U.S. economic data, which raised expectations the Fed would continue with its stimulus cut plan and may raise interest rates earlier than predicted.
In a thin-volume trading yesterday, both S&P 500 and Dow Jones retreated from Monday`s record closing levels.
Gold is currently trading around $1245.80 an ounce after hitting a high of $1246.75 and a low of $1243.51.
It is worthwhile to mention that the recent downside collapse in gold prices has been triggered by the breach of critical support at $1280, which represents Daily SMA 20.
The U.S. dollar rose to trade near a two-month high versus a basket of major currencies to hover around 80.68, after touching a bottom of 80.47 the previous session.
Crude oil for July’s delivery inched up to trade around $102.86 a barrel from the session’s opening of $102.78.