Investing.com - Gold prices held steady during European morning trade on Thursday, as investors looked ahead to key U.S. economic data later in the day for further indications on the strength of the economy and the future course of monetary policy.
On the Comex division of the New York Mercantile Exchange, gold futures for December delivery traded at $1,159.00 a troy ounce during European morning hours, down 10 cents, or 0.01%.
A day earlier, prices lost $3.90, or 0.34%, to settle at $1,159.10. Gold hit $1,130.40 an ounce on November 7, a level not seen since April 2010.
Futures were likely to find support at $1,130.45, the low from November 7, and resistance at $1,177.50, the high from November 10.
Investors were eyeing U.S. data on initial jobless claims due later in the day, as well as Friday's retail sales report for further indications on the strength of the recovery.
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.
Also on the Comex, silver futures for December delivery inched up 4.5 cents, or 0.29%, to trade at $15.66 a troy ounce. Prices fell to $15.04 an ounce on November 7, the weakest level since February 2010.
Elsewhere in metals trading, copper for December delivery tacked on 1.2 cents, or 0.39%, to trade at $3.037 a pound, after data showed that China's factory output grew less than expected in October, adding to pressure on policymakers to introduce broad-based stimulus measures.
Data released earlier showed that industrial production in China rose at an annualized rate of 7.7% in October, missing estimates for a gain of 8.0% and the second smallest increase since 2009.
Fixed asset investment, which tracks construction activity, rose 15.9% in the January-October period, the slowest pace since 2001.
The weaker than expected data underlined concerns about China's economy and sparked speculation policymakers in Beijing will have to introduce fresh stimulus to meet the government's 7.5% growth target.
China is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.