Investing.com - Gold prices rose on Friday, as market participants eyed a highly anticipated report on U.S. employment due later in the day and as Greece concerns continued to dominate sentiment.
On the Comex division of the New York Mercantile Exchange, gold futures for April delivery were up 0.39% to $1,267.60.
The April contract ended Thursday's session 0.14% lower at $1,262.70 an ounce.
Futures were likely to find support at $1,255.80, the low from February 3 and resistance at $1,286.50, the high from February 3.
Gold futures slipped lower on Thursday after the release of mixed U.S. economic reports. The U.S. Department of Labor said the number of individuals filing for initial jobless benefits increased by 11,000 to 278,000 last week from the previous week’s revised total of 267,000.
Analysts had expected initial jobless claims to rise by 23,000 to 290,000 last week.
A separate report showed that the U.S. trade deficit widened to $46.56 billion in December from $39.75 billion in November, whose figure was revised from a previously estimated deficit of $39.00 billion. Analysts had expected the trade deficit to narrow to $38.00 billion in December.
Traders were looking ahead to the release of the latest U.S. nonfarm payrolls report later Friday, for further indications on the strength of the recovery in the labor market.
A strong U.S. nonfarm payrolls report was likely to add to speculation over when the Federal Reserve will begin to raise interest rates, while a weak number could boost gold by undermining the argument for an early rate hike.
Meanwhile, traders continued to focus on developments in Greece, after German Finance Minister Wolfgang Schauble said on Thursday that Greece's financial difficulties were the result of domestic problems, but that Germany would do all in its power to help.
Schauble was speaking at a joint press conference with his Greek counterpart Yanis Varoufakis in Berlin on Thursday.
The comments came after the European Central Bank said it would no longer accept Greek bonds as collateral for lending, shifting the burden on to Greece’s central bank to provide additional liquidity for its lenders and increasing pressure on Athens.
Greece’s government is seeking debt relief on its current €240 billion bailout, which has fuelled fears over a clash with its creditors that could bring about its eventual exit from the euro zone.
Elsewhere in metals trading, silver for March delivery edged up 0.09% to $17.212 a troy ounce, while copper futures for March delivery rose 0.29% to $2.602 a pound.