Gold little changed, faces downside pressure

Precious-Gold little changed on Thursday, hovering around one and half month high, ahead of the release of important data from US and Europe.

Spot gold is trading at $1229.51 an ounce after recording a high of $1231.15 and a low of $1227.62, where it is poised for its third weekly incline this week.

Later in the day, eyes will be on budget deficit and retail sales data from the UK and US jobless claims, especially as both economies had lowered their growth forecasts recently adding to global recovery concerns.

Gold firmed over the past three weeks on worries global economic recovery is losing steam, which enhanced demand on the yellow metal as safe harbor.

Yesterday, gold added $4.60 or 0.38% to close at $1229.21 an ounce. Gold Price was setin London on Wednesday at $1218.00 per ounce during the PM fixing declining from $1223.00 during the AM fixing. SPDR gold trust, the world's largest exchange-traded fund backed by bullion, surged 0.91 metric tons to 1,295.52 on August 18.

The metal has formed an upside trend since falling to a low of $1156.79 an ounce on July 28, where the trend strengthened after the breach of $1200 critical level.

However, physical buying is not strong enough and metal gains may be capped by possible profit taking and the dollar's rise versus majors.

Momentum indicators on the daily charts are showing that gold is currently trading in an overbought area which may encourage profit taking by investors.

On the other hand, the dollar strengthened against a basket of major currencies as depicted by the dollar index which rose to 82.66 compared with yesterday's closing at 82.28.

Moreover, oil prices surged to $75.65 a barrel from the day's opening at $75.20 taking a boost from the advance in Asian shares.

Among other precious metals, platinum slipped to $1535.20 from $1537.20 on Wednesday; palladium declined to $486.30 from $487.70; and silver inched up to $18.46 from $18.44, as of 08:00 GMT.