Investing.com - Gold prices edged lower on Thursday, but gains were expected to remain limited as disappointing manufacturing activity data from China weighed and Wednesday's U.S. home sales data continued to support the dollar.
On the Comex division of the New York Mercantile Exchange, gold futures for June delivery were down 0.09% at $1,185.80.
The June contract ended Wednesday's session 1.35% lower at $1,186.90 an ounce.
Futures were likely to find support at $1,180.50, the low from April 1 and resistance at $1,204.30, Wednesday's high.
Data earlier showed that China's HSBC (LONDON:HSBA) flash manufacturing purchasing managers' index slipped to 49.2 in April from March's final reading of 49.6, shrinking for the third consecutive month.
China is the world's second largest gold consumer.
Meanwhile, the dollar remained supported after the U.S. National Association of Realtors said on Wednesday that existing home sales rose 6.1% last month to 5.19 million units from a revised total units of 4.89 million. Analysts had expected existing home sales to rise 3.0% in March.
The greenback's gains were capped however, as investors pushed back expectations for higher U.S. interest rates after a recent streak of soft economic data dampened optimism on the country's recovery.
Market participants were now eyeing data on U.S. initial jobless claims and new home sales, due later in the day, for further indications on the strength of the economy.
Elsewhere in metals trading, silver futures for May delivery slipped 0.15% to $15.773 a troy ounce, while copper futures for May delivery were flat at $2.666 a pound.