Gold ticks down in early trading, yet may rebound
Gold declined slightly on Thursday's early trading, yet may change direction as the euro advanced and the dollar retreated.
The euro continued its rise for the second day after yesterday's comments from the European Central Bank Executive Board member Benoit Coeure who clarified that the European Central Bank might revive the bond-purchase program to prevent rising borrowing costs from pressuring Spain to ask for an international bailout.
Coeure remarks eased tensions and supported markets to rebound on speculation the European Central Bank will intervene and control rising yielding on Spanish bonds, where an earlier move might shield Spain and other highly indebted nations such as Italy from following other weak nations into deep crisis and therefore asking for bailouts.
Also, Spanish Prime Minister Mariano Rajoy said Spain will not need a bailout.
Later in the day, investors will focus on Italian bond selling of three-year notes after yesterday's auctions showed a sharp rise in borrowing cost.
On the other hand, the U.S. dollar slipped against a basket of major currencies after Fed Vice ChairmanJanet Yellen said yesterday I consider a highly accommodative policy stance to be appropriate in present circumstances,clarifying that further U.S. easing could be warranted if the recovery proceeds at a slower-than-expected pace.
The dollar index is currently hovering near 79.70 compared with the day's opening of 79.73.
The U.S. will release important data concerning trade, inflation and jobs market as of 12:30 GMT.
Precious gold slipped slightly on the daily basis to trade around $1656.54 an ounce where it touched a low of $1655.30 while the day's high was recorded at $1660.29.
Crude oil for May's delivery is currently showing a rise to trade around $102.83 a barrel after opening today's trades at $102.56.