The price of gold was steady above $1,600 Thursday morning as the U.S. dollar was ticking lower ahead of today's inflation report.
Gold for August delivery, the most actively traded contract, edged up $1.50 to $1,620.90 an ounce. Yesterday, gold settled higher for a fourth straight session on continued hopes of further monetary stimulus on some soft economic data. The dollar weakened and investors sought the safe haven status of the precious metal following some weak economic data from the U.S.
Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, were unchanged at 1,274.37 tons.
This morning, the U.S. dollar was leveling off from its two-year high versus the euro and easing to a two-week low against sterling. The buck was moving lower versus the Swiss franc and the yen.
In economic news, euro zone inflation slowed to a 15-month low in May as initially estimated, data from Eurostat showed. Annual inflation fell to 2.4 percent from 2.6 percent in April. Nonetheless, inflation continues to stay above the European Central Bank's 'below, but close to 2 percent' target.
Meanwhile, the Swiss National Bank decided to retain the exchange rate cap and the near-zero interest rate. The bank also noted that it "will not tolerate" further gains in the currency and is prepared to take necessary measures at any time. The central bank said it will continue to enforce the minimum exchange rate of CHF 1.20 per euro "with the utmost determination." The bank said it is prepared to buy foreign currency in unlimited quantities for this purpose.
Elsewhere, the price of silver was ticking lower, while platinum was moving higher in morning deals.
From the U.S., the consumer price index for May is scheduled to be released at 8:30 am ET. Economists expect the headline index to have declined by 0.2 percent compared to a 0.2 percent increase in core inflation.
Simultaneously, the Labor Department will release its jobless claims report for the week ended June 09. Economists expect claims to edge down to 375,000 from 377,000 in the previous week.
For comments and feedback: editorial@rttnews.com