Investing.com - Gold futures moved lower during U.S. afternoon trade Thursday, erasing earlier gains following the release of better-than-expected U.S. employment and manufacturing data.
On the Comex division of the New York Mercantile Exchange, gold futures for December delivery traded at USD1,715.95 a troy ounce during U.S. trade, plunging 0.20%.
Prices rose by as much as 0.5% earlier in the day to trade at a session high of USD1,727.25 a troy ounce, the strongest level since October 23.
Gold prices were likely to find support at USD1,688.85 a troy ounce, the low from September 7 and resistance at USD1,730.35, the high from October 23.
The Department of Labor said earlier that the number of individuals filing for initial jobless benefits fell to 363,000 last week from 372,000 the previous week, compared to expectations for a decline to 370,000.
The previous week’s figure was revised up to 372,000 from a previously reported 369,000.
The data came on the heels of a report showing that U.S. private sector employment increased more-than-expected in October.
Payroll processing firm ADP said the U.S. private sector added 158,000 jobs this month, surpassing expectations for an increase of 135,000.
Also Thursday, the Institute for Supply Management said its index of purchasing managers rose to a five-month high of 51.7 in October from a reading of 51.5 in September.
A separate report showed that U.S. consumer confidence rose to the highest level since February 2008 in October.
Market players now turned their attention to Friday’s government report on U.S. nonfarm payrolls to further gauge the strength of the U.S. labor market.
Any improvement in the U.S. economy could scale back expectations for further easing from the Federal Reserve, boosting the dollar and potentially weighing on the precious metal.
Political developments were likely to take center stage next week, with the U.S. presidential election on November 6 and the start of the Chinese Communist Party Congress on November 8, where a once-in-a-decade leadership change was to take place.
Euro zone developments also remained in focus. Investors were cautious amid uncertainty over when Spain may request a bailout and whether Greece will secure the next tranche of its bailout funding.
Elsewhere on the Comex, silver for December delivery fell 0.06% to trade at USD32.29 a troy ounce, while copper for December delivery rallied 0.96% to trade at USD3.551 a pound.
Copper prices were boosted after China’s state-affiliated Federation of Logistics and Purchasing said that its purchasing managers’ index rose to a three-month high of 50.2 in October from September's 49.8. A reading above 50.0 signifies expansion.
A separate report from HSBC showed that manufacturing activity in the Asian nation improved to an eight-month high of 49.5 from September's 47.9, though it still indicated activity contracting for the 12th consecutive month.
The Asian nation is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.