Investing.com - Gold prices slipped on Friday, to trade near an eight-week low as a stronger U.S. dollar weighed on demand for the precious metal and as investors were focusing on the upcoming report on U.S. nonfarm payrolls due later in the day.
On the Comex division of the New York Mercantile Exchange, gold futures for August delivery fell 0.17% to $1,221.27.
The August contract ended Thursday’s session 0.13% higher at $1,223.30 an ounce.
Futures were likely to find support at $1,216.50, Wednesday’s low and resistance at $1,229.50, Thursday’s high.
The greenback initially weakened after payrolls processor ADP reported on Thursday that U.S. private employers added 158,000 jobs in June, well below economists' expectations.
A separate report showed that initial jobless claims unexpectedly rose by 4,000 to 248,000 last week.
The data came after Wednesday’s minutes of the Federal Reserve’s June meeting showed a lack of consensus among policymakers over the outlook for inflation and how it could impact the future pace of interest rate increases.
The Fed hiked rates at its June meeting and stuck to its forecast for one more rate hike this year and three in 2018, but the subdued inflation outlook has since raised doubts over whether the Fed will be able to stick to its planned tightening path.
But sentiment on the U.S. dollar improved ahead of a highly-anticipated U.S. employment report due later in the day.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.16% at 95.73.
Gold is sensitive to moves higher in both U.S. rates and the dollar. A stronger dollar makes gold more expensive for holders of foreign currency, while a rise in U.S. rates lifts the opportunity cost of holding non-yielding assets such as bullion.
Elsewhere in metals trading, silver futures for September delivery declined 0.54% to $15.897 a troy ounce, while copper futures for September delivery rose 0.21% to $2.667 a pound.