Investing.com - Gold prices fell in early European trading hours on Friday, as the U.S. dollar's global strength continued to weigh on demand for the safe-haven metal.
On the Comex division of the New York Mercantile Exchange, gold for December delivery traded at $1,152.50 a troy ounce during European morning trade, down 0.77%.
The December contract settled 0.21% higher on Thursday to end at $1,1161.5 a troy ounce.
Futures were likely to find support at $1,130.40, the low from November 7 and resistance at $1,169,40, the high from November 12.
The dollar remained broadly supported, even as the U.S. Department of Labor said on Thursday that the number of individuals filing for initial jobless benefits increased by 12,000 last week to 290,000. Analysts had expected jobless claims to rise by 4,000 to 282,000 last week.
Comex gold prices have been under heavy selling pressure in recent weeks amid speculation the Federal Reserve is moving closer to raising interest rates for the first time in eight years after ending its monthly bond-buying program, also known as quantitative easing, last month.
Expectations of higher borrowing rates going forward is considered bearish for gold, as the precious metal struggles to compete with yield-bearing assets when rates are on the rise.
Gold, which yields nothing and costs money to hold, is seen as a less attractive investment during times of rising interest rates.
Market participants were now eyeing data on U.S. retail sales and consumer sentiment due later in the day for further indications on the strength of the economic recovery.
Elsewhere in metals trading, Comex, silver for December delivery dropped 1.80% to $15.340 a troy ounce, while December copper edged up 0.07% to trade at $2.997 a pound.