Gold futures edge lower ahead of ECB, U.S. jobs data

Gold futures edged lower in rangebound trade on Thursday, as investors looked ahead to the European Central Bank meeting later in the session.

Market players were also awaiting data on U.S. jobless claims later Thursday to assess the strength of the U.S. economy and the need for further stimulus from the Federal Reserve.

Moves in the gold price this year have largely tracked shifting expectations as to whether the Federal Reserve would end its bond-buying program sooner-than-expected.

On the Comex division of the New York Mercantile Exchange, gold futures for August delivery traded at USD1,392.55 a troy ounce during European morning hours, down 0.4% on the day.

Comex gold prices held in a range between USD1,391.25 a troy ounce, the daily low and a session high of USD1,403.55 a troy ounce.

Gold futures were likely to find support at USD1,355.55 a troy ounce, the low from May 23 and near-term resistance at USD1,421.25, the high from May 31.

The ECB was not widely expected to make any changes to monetary policy at its monthly meeting later Thursday but the bank’s post-policy meeting press conference with President Mario Draghi would be closely watched.

Meanwhile, in the U.S., data on Wednesday showed that the U.S. private sector added fewer-than-expected jobs in May, dampening expectations that the Federal Reserve would start to unwind its asset purchase program this year.

Payroll processor ADP said U.S. non-farm private employment rose by a seasonally adjusted 135,000 last month, below expectations for an increase of 165,000. 

The data is sometimes seen as an indicator of Friday’s closely watched government report on nonfarm payrolls.

Elsewhere on the Comex, silver for July delivery dipped 0.6% to trade at USD22.33 a troy ounce, while copper for July delivery fell 0.85% to trade at USD3.343 a pound.

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