The precious metal's initial up-move was being capped by a modest pickup in the greenback demand. In fact, the key US Dollar Index has managed to recover early losses and was seen weighing on dollar-denominated commodities - like gold.
Adding to this, buoyant trading sentiment around European equity markets, which tends to dent demand for traditional safe-haven assets, also did little to provide any boost to the yellow metal's recovery move from near three-week lows touched on Wednesday.
However, sliding US Treasury bond yields might now contribute towards limiting any sharp downslide for the non-yielding commodity, at least for the time being.
Next on tap would be the US economic docket, which would be looked upon for some short-term trading opportunities. Also in focus would be the ECB decision, which is expected to infuse some volatility in the FX market and might influence the metal's safe-haven demand.
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