SINGAPORE: Gold traded little changed on Friday, struggling to recover from a four-day losing streak after the European Central Bank stopped short of offering any immediate aid to contain the region’s debt crisis, while caution prevailed ahead of a key U.S. jobs report.
The euro fell to a one-week low against the dollar after the ECB disappointment, especially as hopes for bold actions were raised by ECB chief Mario Draghi’s vow last week to do everything possible to preserve the single currency.
“Cash is king,” said Dick Poon, manager of precious metals at Heraeus in Hong Kong. “People would rather hold cash than commodities, because they are still worried about what is going on in the euro zone and economies elsewhere. The overall sentiment is pretty negative.”
Spot gold was little changed at $1,591.21 an ounce by 0701 GMT, after falling for four consecutive sessions. It was headed for a 2-percent weekly decline, its biggest in more than one month.
U.S. gold futures contract for December delivery gained 0.2 percent to $1,594.40.
Gold held up relatively well above a support level near $1,580, as Thursday’s U.S. labour and manufacturing data suggested the economy is mired in a soft patch, keeping hopes of further monetary stimulus alive.