Investing.com - Gold futures were little changed in rangebound trade during European morning hours on Thursday, as investors stuck to the sidelines ahead of a two-day economic summit of European Union leaders.
On the Comex division of the New York Mercantile Exchange, gold futures for April delivery traded at USD1,587.40 a troy ounce during European morning trade, nearly flat on the day.
Prices held in a tight USD6-trading range between USD1,582.70 a troy ounce, the daily low and a session high of USD1,588.40 a troy ounce.
Comex gold rose to USD1,598.00 a troy ounce on Wednesday, the strongest level since February 28.
Gold prices were likely to find support at USD1,560.60 a troy ounce, the low from March 8 and near-term resistance at USD1,602.20, the high from February 28.
Gold prices struggled for upside traction due to a slightly stronger U.S. dollar, as dollar-priced commodities become more expensive to investors holding other currencies when the greenback gains.
The dollar index, which tracks the performance of the greenback against a basket of six other major currencies, traded at 83.15, just below the previous session’s seven-month high of 83.33.
EU leaders gather in Brussels today for a two-day summit to endorse plans for “structural” assessments of national budgets and discuss a bailout for Cyprus.
Market players were also awaiting the outcome of an auction of long-dated Spanish government bonds later Thursday, after Madrid saw borrowing costs fall to their lowest level since April 2010 following an auction of six-and 12-month bonds on Tuesday.
Gold traders also looked ahead to the release of a weekly government report on U.S. initial jobless claims, as investors look for further signs the U.S. economic recovery is gaining momentum.
Data on Wednesday showed that U.S. retail sales rose 1.1% in February, beating expectations for a 0.5% increase. Core retail sales, which exclude automobile sales, also rose more-than-expected, climbing 1.0% compared to expectations for a 0.2% gain.
The positive retail sales data fuelled optimism that the economic recovery in the U.S. is gaining traction after a report last week showed that the economy added more jobs than expected in February, bringing the unemployment rate to a four-year low of 7.7%.
However, market analysts noted that the still-high jobless rate will keep the Federal Reserve’s asset-purchase program in place for the indefinite future.
The central bank previously stated that monetary policy will remain accommodative “at least as long” as the jobless rate remains above 6.5%.
Moves in the gold price this year have largely tracked shifting expectations as to whether the Fed could bring quantitative easing to an end this year.
Gold’s investment appeal has weakened in recent weeks as market players opted for global equities over the precious metal.
The Dow Jones Industrial Average climbed for the ninth consecutive session on Wednesday to move further into unchartered territory, while gold prices are down nearly 5% in 2013.
Elsewhere on the Comex, silver for May delivery shed 0.15% to trade at USD28.91 a troy ounce, while copper for May delivery added 0.6% to trade at USD3.545 a pound.
On the Comex division of the New York Mercantile Exchange, gold futures for April delivery traded at USD1,587.40 a troy ounce during European morning trade, nearly flat on the day.
Prices held in a tight USD6-trading range between USD1,582.70 a troy ounce, the daily low and a session high of USD1,588.40 a troy ounce.
Comex gold rose to USD1,598.00 a troy ounce on Wednesday, the strongest level since February 28.
Gold prices were likely to find support at USD1,560.60 a troy ounce, the low from March 8 and near-term resistance at USD1,602.20, the high from February 28.
Gold prices struggled for upside traction due to a slightly stronger U.S. dollar, as dollar-priced commodities become more expensive to investors holding other currencies when the greenback gains.
The dollar index, which tracks the performance of the greenback against a basket of six other major currencies, traded at 83.15, just below the previous session’s seven-month high of 83.33.
EU leaders gather in Brussels today for a two-day summit to endorse plans for “structural” assessments of national budgets and discuss a bailout for Cyprus.
Market players were also awaiting the outcome of an auction of long-dated Spanish government bonds later Thursday, after Madrid saw borrowing costs fall to their lowest level since April 2010 following an auction of six-and 12-month bonds on Tuesday.
Gold traders also looked ahead to the release of a weekly government report on U.S. initial jobless claims, as investors look for further signs the U.S. economic recovery is gaining momentum.
Data on Wednesday showed that U.S. retail sales rose 1.1% in February, beating expectations for a 0.5% increase. Core retail sales, which exclude automobile sales, also rose more-than-expected, climbing 1.0% compared to expectations for a 0.2% gain.
The positive retail sales data fuelled optimism that the economic recovery in the U.S. is gaining traction after a report last week showed that the economy added more jobs than expected in February, bringing the unemployment rate to a four-year low of 7.7%.
However, market analysts noted that the still-high jobless rate will keep the Federal Reserve’s asset-purchase program in place for the indefinite future.
The central bank previously stated that monetary policy will remain accommodative “at least as long” as the jobless rate remains above 6.5%.
Moves in the gold price this year have largely tracked shifting expectations as to whether the Fed could bring quantitative easing to an end this year.
Gold’s investment appeal has weakened in recent weeks as market players opted for global equities over the precious metal.
The Dow Jones Industrial Average climbed for the ninth consecutive session on Wednesday to move further into unchartered territory, while gold prices are down nearly 5% in 2013.
Elsewhere on the Comex, silver for May delivery shed 0.15% to trade at USD28.91 a troy ounce, while copper for May delivery added 0.6% to trade at USD3.545 a pound.