The precious metal is probably taking breath after rallying for six consecutive sessions as it rebounded from a low of $1156.79 to $1196.36, where it is currently trading.
Yesterday, gold added $10.00 or 0.84% to close at $1194.79 an ounce. Gold Price was setin London on Wednesday at $1199.50 per ounce during the PM fixing inclining from $1194.50 during the AM fixing. SPDR gold trust, the world's largest exchange-traded fund backed by bullion, retreated to 1,320.43 metric tons on July 29.
Today, the metal is waiting for news from the U.S. job market which will determine the strength of the U.S. economy after the better than estimated reports released this week.
In addition, eyes will be on rate decisions from the ECB and BoE. Although they are expected to keep interest rates unchanged in August, but the in the coming few months we might see a possible rise in the borrowing cost and unwinding in stimulus.
On the other hand, the strength of the stocks is preventing the shiny metal from advancing more as the upbeat earnings by companies is damping demand on the metal as a safe haven.
However, a strong boost is expected to be given to the metal as China starts buying gold after it had announced on Tuesday that it would allow banks to trade in gold to enhance liquid trade.
In the currency market, the U.S. dollar is close to the day's opening after rebounding yesterday against a basket of major currencies. However, the greenback is still impacted by uncertainties surrounding the outlook of the economy.
The U.S. dollar drop against majors supported oil which climbed to $82.95 a barrel yesterday but today it slipped to $82.22. The black gold is giving impetus to the shiny metal that is predicted by some analysts to jump to $1300 an ounce in the fourth quarter.