Investing.com - Gold was little changed in subdued trade on Thursday, as investors awaited the conclusion of the European Central Bank's monthly policy meeting later in the session as well upcoming data on U.S. employment.
On the Comex division of the New York Mercantile Exchange, gold futures for April delivery dipped 70 cents, or 0.06%, to trade at $1,200.20 a troy ounce during European morning hours. Prices held in a tight range between $1,198.70 and $1,205.40.
Futures were likely to find support at $1,194.60, the low from March 3, and resistance at $1,223.00, the high from March 2.
On Wednesday, gold shed $3.50, or 0.29%, to settle at $1,200.90 an ounce as a broadly stronger U.S. dollar dampened the appeal of the metal.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.2% to 96.19 early on Thursday, the highest level since September 2003.
The greenback remained supported amid expectations for higher interest rates in the U.S. as early as June.
Meanwhile, the euro traded at an 11-year low against the dollar as investors looked ahead to the European Central Bank meeting later in the day.
ECB President Mario Draghi was expected to shed more light on how the bank will implement its €1.1 trillion quantitative easing program, which is due to start this month.
Traders also looked ahead to the release of the latest U.S. nonfarm payrolls report on Friday, for further indications on the strength of the recovery in the labor market.
Market analysts expect the data to show that the U.S. economy added 240,000 jobs in February, slowing from a gain of 257,000 in January, while the unemployment rate was forecast to decline to 5.6% from 5.7%.
A strong U.S. nonfarm payrolls report was likely to add to speculation over when the Federal Reserve will begin to raise interest rates, while a weak number could boost gold by undermining the argument for an early rate hike.
Data on Wednesday showed that the U.S. private sector added 212,000 jobs in February, falling short of expectations for an increase of 220,000.
Another report showed that U.S. service sector activity grew at a faster rate than expected in February, boosting expectations for higher interest rates.
Expectations of higher borrowing rates going forward is considered bearish for gold, as the precious metal struggles to compete with yield-bearing assets when rates are on the rise.
Meanwhile, silver futures for May delivery inched up 6.5 cents, or 0.4%, to trade at $16.22 a troy ounce. On Wednesday, silver slumped 13.8 cents, or 0.85%, to close at $16.15 an ounce.
Elsewhere on the Comex, copper for May delivery tacked on 0.9 cents, or 0.33%, to trade at $2.668 a pound after China lowered its 2015 gross domestic product growth target to the lowest level in 11 years.
China's Premier Li Keqiang announced at the annual National People's Congress earlier that the government's target for economic growth in 2015 was set at "around 7%", down from a target of 7.5% in 2014.
Copper is sensitive to the economic growth outlook because of its widespread uses across industries.
The Asian nation is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.