PRECIOUS-Gold reverses gains as investors look past weak U.S. jobs data

(Updates prices)
* ECB increases bond purchases and aid to banks
* U.S. weekly jobless claims surge as COVID-19 infections
rise
* Interactive graphic tracking global spread of coronavirus:
https://tmsnrt.rs/3aIRuz7
in an external browser

By Shreyansi Singh
Dec 10 (Reuters) - Gold eased on Thursday as a failure to
significantly breach the $1,850 per ounce resistance level
prompted technical selling, with persistent overall
vaccine-driven optimism also prompting investors to look past
weak U.S. jobs data.
Spot gold XAU= fell 0.4% to $1,832.20 per ounce at 2:22
p.m. EST (1922 GMT). U.S. gold futures GCv1 settled down 0.1%
at $1,837.40.
"The technical failure above $1,850 has buyers less
aggressive. The tourists have mostly gotten out and it feels
more like real money re-allocating," said Tai Wong, head of base
and precious metals derivatives trading at BMO.
"Looking ahead, gold is searching for a comfortable range
with prospects for a gentler rise overall."
Further proof of a stalling labor market recovery, data
showed that the number of Americans filing first-time claims for
unemployment benefits surged last week with the United States in
the throes of a fresh wave of infections and resultant
lockdowns. Gold initially rose after the jobs data and a further
accommodative stance from the European Central Bank.
In an attempt to aid a euro zone economy suffering due to
the second wave of the pandemic, the ECB eased policy again and
kept government, corporate borrowing costs at record lows.
But "there was some disappointment with the expectations
that they (ECB) were going to extend the programme (by) not
nine, but 12 months," said Edward Moya, senior market analyst at
OANDA.
"A lot of investors are more cautious heading into the
holidays, you'll see more erratic moves because we're not going
to have steady volumes," Moya added. USD/
Gold, regarded as a hedge against inflation has risen about
21% so far this year underpinned by unprecedented stimulus
unleashed across the globe in 2020.
Among other precious metals, silver XAG= was down 0.1% at
$23.91 per ounce and platinum XPT= rose 2% to $1,020.83.
Palladium XPD= gained 3.5% to $2,343.34.