Investing.com - Gold prices languished near three-month lows on Thursday, as investors looked ahead to key U.S. data later in the day as well as a host of Fed speakers for further indications on the likelihood of a December rate hike.
Gold for December delivery on the Comex division of the New York Mercantile Exchange ticked up $1.70, or 0.16%, to trade at $1,086.60 a troy ounce during European morning hours.
A day earlier, gold fell to $1,083.20, the lowest since August 7, as investors continued to cut holdings of the precious metal amid expectations the Federal Reserve will raise interest rates at its next meeting in December.
The U.S. is to release a weekly report on initial jobless claims at 8:30AM Eastern Time Thursday, followed by data on job openings for September at 10:00AM ET.
Fed Chair Janet Yellen said last week that a December rate hike was a "live possibility" if justified by upcoming economic data.
The likelihood of a December interest rate increase by the Fed surged to 70%, according to Fed funds futures data from the CME Group (O:CME), after data showing the U.S. economy created more jobs than expected in October.
Meanwhile, a host of FOMC members, including Yellen, are slated to make appearances at the U.S. central bank's two-day conference on Monetary Policy Implementation and Transmission in the Post-Crisis period.
The Fed chief is scheduled to make the opening remarks on Thursday morning, while Fed chair Stanley Fischer is scheduled to deliver a speech on the transmission of exchange rates to output and inflation on Thursday evening.
Other Fed officials speaking Thursday include, New York Fed President William Dudley, St. Louis Fed President James Bullard, Richmond Fed President Jeffrey Lacker and Chicago Fed President Charles Evans.
Meanwhile, the U.S. dollar held near seven-month highs against a basket of six other major currencies amid expectations for tighter monetary policy in the U.S. in the coming months.
Dollar-priced commodities become more expensive to investors holding other currencies when the greenback gains.
Gold prices have lost 8.5% since mid-October as investors recalibrated their expectations of U.S. monetary policy in response to hawkish signals from the Fed.
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, copper prices struggled near the lowest level since July 2009 on Thursday, amid indications China's economy is losing momentum, fueling fears over slackening demand for the industrial metal.
The Asian nation is the world’s largest copper consumer, accounting for almost 40% of world consumption.