Gold futures edged down Thursday as the market awaited major data releases from China and the U.S.
Analysts and brokers attributed the move to technically driven trading.
Gold for February, the most actively traded contract, ended down $2.20, or 0.2%, at $1,208.50 a troy ounce on the Comex division of the New York Mercantile Exchange. Futures had been higher during most of Thursday’s session but sold off into the close, marking their second losing session in a row.
Analysts said traders would be watching Chinese inflation data due to be released late Thursday and U.S. employment data due early Friday before taking a more definitive stance on the direction of gold prices.
Analysts said gold got early support from rising expectations that the European Central Bank could launch an aggressive stimulus program after its Jan. 22 meeting, a potentially inflationary move that would bolster the appeal of haven investments such as gold. But with little in the way of fundamental or macroeconomic drivers to support prices, they fell toward the end of the day.
The appeal of gold as a defensive investment has faded in recent months as the U.S. economic recovery has gained steam and an interest-rate increase has become more likely. Still, gold has inched higher this year amid fears of slowing global economic growth and renewed concerns about financial stability in Greece.
January 11, 2016