Gold Steady Ahead Of Draghi Press Conference
Washington (Sept 4) Gold prices are little changed Wednesday morning, amid a somewhat muted reaction to the European Central Bank's unexpected rate cut announcements.
In a surprise move, the European Central Bank today cut its benchmark interest rate to a record low of 0.05%, from 0.15%.
The bank has announced a reduction in its deposit facility rate to -0.2%. The marginal lending rate has been cut to 0.3%, from 0.4% earlier. Markets are now looking ahead to the post meeting comments from the ECB President Mario Draghi .
Meanwhile, the Bank of England has left its interest rate unchanged at 0.5%, as expected.
Traders are now looking ahead to a slew of US economic data for further direction.
Gold futures for December are down USD1.30 or 0.10% at USD1,269.20 an ounce.
On Wednesday, gold futures ended up USD5.30 or 0.4% at USD1270.30 an ounce, on bargain hunting after suffering a severe setback a day earlier on some upbeat US economic data.
Silver for December is up USD0.054 or 0.28% at USD19.243 an ounce. Meanwhile, copper is up USD0.029 or 0.94% at USD3.157 per pound.
In just-released economic news, the US private sector added 204,000 jobs in August, according to payroll processing firm ADP. That's slightly lower than expected.
The Commerce Department will release its trade balance report for July at 8:30 am ET . The Labor Department's jobless claims report for the week ended August 30 , and the revised second quarter productivity and costs data are also due around the same time.
Later in the morning, Markit is scheduled to release revised estimate of its service sector purchasing managers' index for the US and the Institute for Supply Management will release the results of its service sector survey for August.