Investing.com - Gold prices bounced off a 10-month low on Friday, as the U.S. dollar remained slightly weaker ahead of a key U.S. employment report due to be released later in the day.
On the Comex division of the New York Mercantile Exchange, gold futures for February delivery were up 0.50% at $1,175.30, off Thursday’s 10-month lows of $1,160.00.
The February contract ended Thursday’s session 0.38% lower at $1,169.40 an ounce.
Futures were likely to find support at $1,160.00 and resistance at $1,193.30, Wednesday’s high.
The dollar had strengthened broadly on Wednesday after the Organization of the Petroleum Exporting Countries reached an agreement on an oil output cut aimed at tackling global oversupply and shoring up prices.
Expectations for higher oil prices added to U.S. inflation expectations, which have already been boosted by prospects for increased fiscal spending under the Trump administration.
The dollar also found support after the Institute for Supply Management said on Thursday that its manufacturing activity index rose to 53.2 last month from October’s reading of 51.9. Analysts had forecast a smaller increase to 52.2.
On a less positive note, the U.S. Department of Labor said initial jobless claims increased by 17,000 to 268,000 last week, confounding expectations for a 2,000 rise to 253,000.
A stronger U.S. dollar usually weighs on gold, as it dampens the metal's appeal as an alternative asset and makes dollar-priced commodities more expensive for holders of other currencies.
Elsewhere in metals trading, silver futures for March delivery gained 0.46% to $16.582 a troy ounce, while copper futures for March delivery tumbled 1.06% to $2.615 a pound.