Gold rose above $ 1,200 an ounce on Thursday as investors weigh the outlook for interest rates before the ECB announces details of its program of debt-purchase. But gains were capped by strong financial data from the US and a stronger dollar.
Spot gold was marked by 0.5 percent to $ 1,206.03 an ounce and was at $ 1204.14 in Singapore. Gold for April delivery was rising 0.2 percent to $ 1,203.50 an ounce on the Comex.
Gold is on unstable surfaces on the back of rugged US financial data, fears of a rise in interest rates in the near future and waning investor confidence.
Data on Wednesday showed of private employers added 212,000 jobs in the private sector in February. Moreover, the Institute for Supply Management said its services index was 56.9 in February, which is slightly above 56.7 in January.
“Investors are evaluating the data for clues on when the Federal Reserve could raise policy rates near zero. An index of purchasing managers in the US services unexpectedly expanded at a faster pace in February, data showed on Wednesday, when US stocks tumbled second consecutive day. The ECB will leave its benchmark interest rate at a historical low of 0.05 per cent and the deposit rate from below 0.2 percent when it meets in Nicosia, Cyprus”, according to Bloomberg economists survey.
SPDR Gold Trust, saw its holdings fall to one-month lows earlier this week after post its biggest efflux of one day this year.
“Weekly unemployment figures in the US are going to out today. Before the gold is sluggish. Private sector jobs data reported on yesterday, because of the strength of the dollar, Gold was trading under $1,200. In the domestic market weakens of 0.12 per cent the gold is trading around Rs 26,515.” Mcx Tips Advisory said.
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