Gold is trading lower on Thursday after it rose yesterday on growing uncertainty over the developments in Greece and news that the ECB unexpectedly cancelled the acceptance of Greek bonds in return for funding forcing the Greek central bank to provide billions of emergency liquidity for banks in the weeks to come.

Market participants also look ahead to the Interest Rate Decision of the Bank of England scheduled for 12:00 GMT and a set of U.S. data including Initial Jobless Claims to get a better judgement on when the FED is going to hike interest rates. A future interest rate hike adds pressure on gold. Higher interest rates make gold less attractive as the metal is not yield-bearing. A stronger greenback recently also weighed on the dollar-denominated precious metal as it makes it more expensive for holders of other currencies

In January gold prices increased by almost 8% as the precious metal was sought after as safe-haven asset.

The precious metal is currently quoted at USD1,259.10, -0,75% a troy ounce. On Thursday the 22^nd of January gold reached a five-month high at USD1,307.40.