Gold under pressure from weak US, Europe data

Gold remained under pressure on Thursday after disappointing data from both sides of the Atlantic fueled concerns about global growth, while investors awaited a rate decision by the European Central Bank later in the day for more trading cues.

Fundamentals

* Spot gold edged down 0.1% to USD 1,650.89 an ounce by 0019 GMT, extending losses from the previous session.

* US gold also inched down 0.1% to USD 1,651.90.

* US companies hired the fewest people in seven months in April, a worrisome sign for a labor market that has struggled to gain traction and adding to concerns that the economy has lost some momentum.

* New orders for US factory goods in March recorded their biggest decline in three years as demand for transportation equipment and a range of other goods slumped, government data showed on Wednesday.

* Weak numbers out of Europe added to worries about global growth. Unemployment in the euro zone in March equalled its record high of 15 years ago, and the region's factories sank further into decline.

* Investors will closely watch a meeting by the European Central Bank later in the day. The ECB is expected to hold fire despite calls to restart its bond-buying programme to shield austerity-hit Spain from further pain.

Market News

* The S&P 500 and the Dow edged lower on Wednesday as data showed that private sector hiring fell far more than expected in April, sparking concerns that Friday's US jobs report will also disappoint investors.

* The euro wallowed near two-week lows against the greenback on Thursday, having hit the skids overnight on the back of more depressing economic news out of Europe that put the spotlight on the central bank's policy meeting.