Investing.com - Gold prices slid lower on Friday, but remained with close distance of Thursday's four-month peak as the release of mixed U.S. economic reports continued to support the precious metal.
On the Comex division of the New York Mercantile Exchange, gold futures for February delivery were down 0.57% to $1,257.60.
The February contract ended Thursday's session 2.45% higher at $1,264.80 an ounce.
data on Thursday showing that the number of people who filed for unemployment assistance in the U.S. last week rose to a four-month high of 316,000, compared to expectations for a decline of 6,000.
In addition, the Federal Reserve Bank of Philadelphia said that its manufacturing index deteriorated to an 11-month low of 6.3 this month from December’s reading of 24.5, while the New York Fed said that its general business conditions index increased to 10.0 this month from a reading of -3.6 in December.
A separate report showed that U.S. producer prices fell by the most in three years in December, falling 0.3% as energy costs tumbled, suggesting that the Federal Reserve could keep rates on hold for longer.
A delay in raising interest rates would be seen as bullish for gold, as it decreases the relative cost of holding on to the metal, which doesn't offer investors any similar guaranteed payout.
Gold futures also remained supported after the Swiss National Bank announced on Thursday that it would discontinue the minimum exchange rate of 1.20 per euro, while lowering interest rates further into negative territory.
Lower interest rates can give gold a lift, as it decreases the relative cost of holding on to the metal, which doesn't offer investors any similar guaranteed payout.
Elsewhere in metals trading, silver for March delivery declined 0.73% to $16.978 a troy ounce, while copper futures for March delivery held steady at $2.557 a pound.