Futures fell for the gold in the trade confined to a narrow range during European hours early on Thursday, as market participants awaited more evidence on the light of new measures to stimulate the slowing global economy.
In the COMEX division of the New York Mercantile Exchange, the futures trading of gold for October delivery at $1,602 per ounce during the early European trading, down 0.12%.
Prices traded in a narrow range at 1, 607.05 USD/Troy an ounce H, the highest price for the day and a low price for the session at 601.05, $ 1 an ounce.
Gold was probably that the hand of the near term support at 590.25, $ 1 an ounce, the lowest price on Wednesday and since 3 August, and resistance at $1,616 an ounce, the highest price since Aug. 14.
Market participants awaited U.S. data later in the day, in an attempt to assess the strength of the U.S. economic recovery, and the need for more stimulus.
The United States will publish official data on building permits, as well as government data on weekly jobless claims. It will also publish official data on housing and a report on manufacturing activity in the Philadelphia area.
The data showed on Wednesday that industrial production in the U.S. rose more than expected in July.
Cut off four consecutive months of decline in July rose by 0.8%, beating expectations for an increase of 0.3% for the reduced expectations of another round of quantitative easing by the central bank in the United States.
Investors remained cautious after data on Wednesday showed that the measure of manufacturing activity in New York dropped the downturn in August for the first time since October 2011.
And track movements in gold prices this year to limit expectations about whether the U.S. central bank will pump more money into the financial system.
Gold prices found support after announcing that Chinese Premier Wen Jiabao late Wednesday that the slowdown in the rate of inflation may stimulate a new monetary facilities to stimulate growth in the second-largest economy in the world.
Tech, which has added persistent speculation in Beijing to cut reserve requirements for banks and interest rates again after inflation fell to its lowest level in 30 months in July.
The People’s Bank of China cut banks’ reserves and interest rates twice so far this year in a bid to boost lending and stimulate growth.
Expectations of monetary incentives tend to make use of gold, as seen to the metal as a store of value and a safe hedge against inflation.
Elsewhere in the COMEX silver declined for the month of September by 0.2% to trade at 27.75 dollars per ounce, while copper for September delivery fell 0.15% to trade at 3.345 dollars per pound.