Investing.com - Gold prices held near a three-week low struck in the previous session on Thursday, as traders looked ahead to the release of key U.S. data later in the session while focusing on developments surrounding talks between Greece and its international creditors.
On the Comex division of the New York Mercantile Exchange, gold futures for August delivery shed $3.60, or 0.3%, to trade at $1,181.30 a troy ounce during European morning hours. Prices held in a range between $1,181.20 and $1,186.30.
A day earlier, gold prices slumped to $1,179.10, the lowest level since May 11, before settling at $1,184.90, down $9.50, or 0.8%, after a batch of upbeat data bolstered the case for a U.S. interest rate hike this year.
Futures were likely to find support at $1,176.60, the low from May 4, and resistance at $1,204.70, the high from June 1.
Market participants were looking to the weekly report on U.S. jobless claims due later in the day, as well as Friday's nonfarm payrolls data for further indications on the strength of the country's job market.
On Wednesday, payroll processing firm ADP said U.S. non-farm private employment rose by 201,000 last month, just above expectations for an increase of 200,000.
The upbeat data raised hopes that the economy was regaining strength after contracting in the first quarter, fuelling speculation that the Federal Reserve could raise rates as soon as September.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.2% at 95.59, moving off a more than one-week low of 95.23 hit in the previous session.
Meanwhile, hopes that Greece will soon reach an agreement with its international lenders on a cash-for-reforms deal reduced the safe-haven appeal of the precious metal.
Also on the Comex, silver futures for July delivery dipped 10.3 cents, or 0.62%, to trade at $16.37 a troy ounce, a level not seen since May 12. Silver lost 31.9 cents, or 1.9%, on Wednesday to end at $16.48.
Elsewhere in metals trading, copper for July delivery declined 2.8 cents, or 1.01%, to trade at $2.699 a pound, the weakest level since April 24. On Wednesday, futures dropped 0.9 cents, or 0.35%, to close at $2.726.
The red metal has been under pressure in recent sessions amid ongoing concerns over the health of China's economy. The Asian nation is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.