Investing.com - Gold prices slipped lower on Friday, as markets turned their attention to the upcoming report on U.S. nonfarm payrolls for further hints on whether or not the Federal Reserve will raise interest rates later this year.
On the Comex division of the New York Mercantile Exchange, gold futures for December delivery were down 0.24% at $1,314.05, just off the four-day high of 1,319.45 hit overnight.
The December contract ended Thursday’s session 0.43% higher at $1,317.10 an ounce.
Futures were likely to find support at $1,301.50, Thursday’s low and a more than two-month low and resistance at $1,340.50, the high from August 26.
Gold prices strengthed briefly thanks to a weaker U.S. dollar after the Institute for Supply Management said on Thursday that its manufacturing activity index dropped to 49.4 last month from July’s reading of 52.6.
It was the worst reading since January and missed expectations for a slight drop to 52.0.
The report came shortly after data showed that U.S. initial jobless claims increased by 2,000 to 263,000 last week, compared to expectations for a 4,000 rise to 265,000.
Market participants were eyeing the U.S. nonfarm payrolls report due later Friday for further indications on the strength of the job market after Fed Vice Chairman Stanley Fischer said earlier in the week that the U.S. labor market is almost at full strength and that the pace of interest rate increases will be data dependent.
Gold is sensitive to moves in U.S. rates. A gradual path to higher rates is seen as less of a threat to gold prices than a swift series of increases.
Elsewhere in metals trading, silver futures for September delivery edged down 0.16% at $18.913 a troy ounce, while copper futures for September delivery climbed 0.65% to $2.089 a pound.