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Gold Little Changed Amid Mixed Dollar

5/10/2012 7:09 AM ET

The price of gold was little changed Thursday morning as the US dollar was steady ahead of weekly jobs data, with traders focusing on the developments in the euro zone.

Gold for June delivery, the most actively traded contract, eased $2.70 to $1,591.50 an ounce. Yesterday, gold settled below $1,600-mark for the first time this calendar year as the dollar continued to gain with investor sentiments impacted by the euro zone problems focused mainly on Greece and Spain. While the Greek political drama continued unabated, the Spanish banking system came under fire and government bond yields soared.

Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, were unchanged at 1,274.99 tons.

Meanwhile, the U.S. dollar was steady near its 3-month high versus the euro and a 3-week high against sterling, while trading flat versus the yen and the Swiss franc.

In economic news from the euro zone, the Bank of England held its interest rates at a record low of 0.50 percent and maintained the size of its bond buying program unchanged despite the double-dip recession domestically, as widely expected.

Meanwhile, U.K. industrial production declined in March from a month ago as expected by economists, while manufacturing output grew more than expected, data from the National Statistics Office showed. Industrial production dropped 0.3 percent month-on-month in March, reversing a 0.4 percent rise in February. Meanwhile, manufacturing output increased 0.9 percent, following a 1.1 percent drop a month ago. Economists were forecasting manufacturing output growth of 0.5 percent.

Elsewhere, the prices of silver and platinum were ticking lower in morning deals.

From the U.S., the Labor Department is due to release its jobless claims report for the week ended May 05 at 8:30 a.m. ET. Economists expect claims to edge up to 366,000 from 365,000 in the previous week.

Simultaneously, the Commerce Department is set to release its trade gap data for March. Economists estimate that the trade gap widened to $49.5 billion in the month after it narrowed to $46 billion in February.

by RTT Staff Writer

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