Investing.com - Gold prices gained ground in European morning hours on Friday, as the release of downbeat U.S. economic reports on Thursday dampened demand for the greenback, while trading volumes were expected to remain thin with U.S. markets closed for a national holiday.
On the Comex division of the New York Mercantile Exchange, gold futures for August delivery were up 0.33% at $1,167.30.
The August contract ended Thursday's session 0.50% lower at $1,163.50 an ounce.
Futures were likely to find support at $1,155.80, Thursday's low and resistance at $1,174.40, the high from July 1.
The dollar weakened after a string of disappointing U.S. data on Thursday fuelled uncertainty over the timing of a rate hike.
The U.S. Commerce Department reported on Thursday that factory orders fell 1.0% in May, compared to expectations for a 0.5% decline.
Separately, the Labor Department reported that the economy added 223,000 jobs in June, compared to expectations for jobs growth of 230,000, although the unemployment rate ticked down to 5.3% last month, from 5.5% in June.
Data also showed that the number of individuals filing for initial jobless benefits in the week ending June 27 increased by 10,000 to 281,000, compared to expectations for a 1,000 fall.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was steady at 96.21 in early European trading, after rising to two-and-a-half week highs of 96.69 earlier in the week.
Meanwhile, market participants continued to monitor the Greek debt situation after hopes for a last minute deal were quashed on Wednesday when Greek Prime Minister Alexis Tsipras urged voters to reject the terms of an international bailout deal.
Greek voters are due to decide on Sunday whether to accept terms proposed by the institutions overseeing the country’s now-expired bailout, the European Central Bank, the International Monetary Fund and the European Commission, or reject them.
Tsipras has said a vote against the proposals would give him a stronger mandate to agree a third bailout Greece’s creditors. However, European leaders have said the referendum is ultimately a vote on whether to remain in the euro zone.
Greece became the first developed country to default on the IMF after its second bailout program expired late Tuesday.
Elsewhere in metals trading, silver futures for September delivery gained 0.39% to $15.622 a troy ounce, while copper futures for September delivery rose 0.26% to $2.637 a pound.