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Gold becalmed as investors sit tight before ECB, US payrolls
[SINGAPORE] Gold's treading water. Bullion was little changed for a second day as investors waited for further leads on global monetary policy, with European Central Bank policy makers convening on Thursday and further data due from the US that'll be weighed by the Federal Reserve.
Bullion for immediate delivery traded at US$1,211.86 an ounce at 9:31 am in Singapore from US$1,212.98 on Wednesday, when it ended just 0.2 per cent lower, according to Bloomberg generic pricing. June has so far proved tamer territory than May, when bullion lost 6.1 per cent amid speculation the Fed will tighten.
Gold has pared its rally this year to 14 per cent as traders increased bets of a possible rate increase in the US in June or July, damping the appeal of bullion. While the ECB probably won't add to stimulus at Thursday's meeting, President Mario Draghi has already endorsed negative rates to kick start growth.
Across the Atlantic, non-farm payrolls on Friday, as well as Fed chair Janet Yellen's comments on June 6, will be scrutinised by investors for clues in the run-up to Fed officials meeting June 14-15.
Data on Wednesday added to the case for higher US rates. The economy expanded at a modest pace across most of the country since mid-April, causing the labour market to tighten, according to the Fed's latest Beige Book.
Manufacturing unexpectedly accelerated in May, helped by an increase in orders, the Institute for Supply Management reported.