Gold prices edged higher on Thursday on the hope of a rate cut by the European Central Bank which is likely to boost sentiment for gold.
Gold futures for August 2012 contract, at MCX, were trading at Rs. 29,732 per 10 grams, up by 0.54% at 2.30 pm IST, after opening at Rs. 29,599 against the previous closing price of Rs. 29,571. It touched an intra-day high of Rs. 29,749. Silver for July 2012 contract was seen trading higher by Rs 392 at Rs54,123 per kgs.
Investors will closely monitor the ADP employment report and the weekly jobless claims numbers from the US, which is due later today.
Spot gold on MCX was seen trading at Rs 29,601 per 10 grams. Domestic bullion, gold of 99.9 and 99.5% purity was seen at Rs 30,125 and Rs 29,925 per 10 grams, respectively.
Investors are cautious ahead of a crucial ECB and BOE meet, which could provide fresh impetus for bullion in the form of monetary easing.