Investing.com – Gold prices climbed in European morning hours on Friday, pulling away from a five-and-a-half year low as investors remained cautious ahead of the highly-anticipated U.S. nonfarm payrolls report due later in the day.
On the Comex division of the New York Mercantile Exchange, for December delivery were up 0.53% at $1,095.80.
The December contract ended Thursday’s session 0.41% higher at $1,090.10 an ounce.
Futures were likely to find support at $1,079.20, the low from July 31 and resistance at $1,103.00, the high from July 31.
Gold prices had weakened after the U.S. Department of Labor reported on Thursday that in the week ending August 1 rose by 3,000 to 270,000 from the previous week’s total of 267,000.
Analysts had expected initial jobless claims to rise by 6,000 to 273,000 last week.
Start Free 7 Day Trial Now: Learn the Real Key to Crypto Trading and Start Printing Money Like a Machine...
Market players now looked ahead to the U.S. nonfarm payrolls report due later Friday, amid ongoing expectations for a September rate hike. The consensus forecast is that the data will show jobs growth of 223,000 last month, while the jobless rate is forecast to hold steady at 5.3%.
Gold has been under heavy selling pressure in recent months amid speculation the Federal Reserve will raise interest rates in September for the first time since 2006.
Expectations of higher borrowing rates going forward is considered bearish for gold, as the precious metal struggles to compete with yield-bearing assets when rates are on the rise.
Elsewhere in metals trading, for September delivery advanced 0.67% to $14.775 a troy ounce, while for September delivery edged up 0.10% to $2.343 a pound.
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data .
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
FREE 3-Part Video Series: Gain the Power and Control to your Financial Security for Yourself. Click Here to Get Instant Access to Podcasts, Books, Courses and Workshops on the making money leveraging Cryptocurrentcy on Top-Perfroming Blockchains.