Gold Steady Ahead of ECB Rate Decision, Unemployment Claims

Gold is stable on Thursday, with a spot price of at $1272.14 per ounce. In the Eurozone, the ECB meets later in the day and is expected to maintain its minimum bid rate at 0.15%. In the US, there are four key releases on the schedule - ADP Nonfarm Payrolls, Trade Balance, Unemployment Claims and the ISM Non-Manufacturing PMI.

After months of fighting in eastern Ukraine between government forces and pro-Russian fighters, Ukrainian President Petro Poroshenko on Wednesday announced a cease-fire in eastern Ukraine. Whether the latest attempt at a truce will last, however, is doubtful. Russia has denied assisting the rebels, but both Ukraine and NATO have said that Russian forces are involved in the fighting. The crisis has severely strained relations between the West and Russia, and if the situation deteriorates, gold prices could move higher.

US numbers continue to impress the markets. On Tuesday, ISM Manufacturing PMI impressed the markets, climbing to 59.0 points, its best showing since April 2011. The index easily beat the estimate of 57.0 points. The strong showing follows an unexpectedly strong GDP, which hit 4.2%. With the US economy moving forward at a fast clip, the US dollar has responded with strong gains against gold. Employment data will be in the spotlight for the remainder of the week, with the release of ADP Nonfarm Payrolls and Unemployment Claims on Thursday, followed by the official Nonfarm Payrolls and the unemployment rate on Friday.

XAU/USD 1272.14 H: 1273.46 L: 1267.90