On the Comex division of the New York Mercantile Exchange, gold futures for October delivery traded at USD1,586.95 a troy ounce during afternoon U.S. trade, plunging 1.14%.
Gold futures were likely to test support at USD1,578.70 a troy ounce, the low of July 25 and resistance at USD1,615.15, the session high.
Pushing gold lower, President Mario Draghi stated the bank may undertake bond purchases in order to bring down the "exceptionally high" borrowing costs of stressed euro zone members, but provided no explicit details on how and when these activities may be carried out.
The ECB will work out the details of the bond buying program "over the coming weeks", Draghi said, adding that the operation would be of a size "adequate to meet its objectives".
The statement disappointed market expectations for bold steps to counter the debt crisis, which have been building since Draghi pledged last week to do whatever is necessary to preserve the euro.
The euro had rallied against the greenback ahead of the press conference, buoyed by expectations for decisive action from the ECB.
Gold prices started declining Wednesday, after the Federal Reserve refrained from implementing fresh easing measures, but the U.S. central bank said economic growth had ‘decelerated’ in the first half of the year and reiterated that it stood ready to provide additional stimulus as necessary.
Elsewhere on the Comex, silver for September delivery plummeted 1.94% to trade at USD27.000 a troy ounce, while copper for September delivery was down 2.35% to USD3.296 a pound.
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