Precious-Gold slipped for a third consecutive session on Thursday trading as downbeat reports from major economies enhanced demand on the dollar as a refuge, thereby triggering a sell-off in the shiny metal.
Yesterday, European PMI manufacturing showed widening contraction to 45.9 in April from 47.7 in March, while unemployment reached 10.9% in March from 10.8% in February. Today, the Spanish government is set to sell 2015 and 2017 bills, while the ECB will announce its rate decision.
The ECB is predicted to leave interest rate on hold at its low record of 1.00% to bolster the waning recovery, yet there are some speculations President Mario Draghi may refer to adding stimulus after he noted last week that inflation will retreat next year. Hence, the main attention today will be on the Draghi's comments in the press conference following the rate decision to see whether his remarks are dovish or hawkish.
Worries from the euro area are expected to continue due to political concerns where on May 6, France and Greece will hold elections.
On the other hand, a report released yesterday showed that U.S. employers added 119,000 jobs last month, the smallest rise in seven months, from a revised of 201,000 in March and median estimates of 170,000 jobs.
The ADP employment is carefully watched as it is considered a good proxy to the non-farm payrolls report due on Friday. Later in the day, the U.S. will release jobless claims and ISM non-manufacturing reports. The green currency, however, may resume its advance even with the drop in data due to its haven characteristic.
Meanwhile, the U.S. dollar is continuing its rebound for the third day after felling yesterday from strong resistance at 79.30 which is expected to be a solid level today also. The dollar index is hovering around 79.17 compared with the day's opening of 79.13. The shiny metal is currently trading around $1,646.85 an ounce from the day's opening of $1,653.32, where it found support near the day's low of $1,640, noting that the yellow metal halted its rise on Tuesday after facing strong resistance at $1,670 which represents SMA 100 level. Crude oil for June's delivery is meanwhile trading lower around $105.07 a barrel from the day's opening of $105.36.
