Investing.com - Gold prices was trading close to 10-month lows on Friday, as Thursday's upbeat U.S. jobless claims data continued to dampen demand for the precious metal ahead of a highly anticipated report on U.S. employment due later in the day.
On the Comex division of the New York Mercantile Exchange, gold for December delivery traded at $1,206.00 a troy ounce during European early afternoon hours, down 0.76%.
Gold prices hit $1,204.30 on Tuesday, a level not seen since January 2.
Futures were likely to find support at $1,204.30, the low from September 30 and resistance at $1,232.70, the high from September 26.
On Thursday, the U.S. Department of Labor said the number of individuals filing for initial jobless benefits decreased by 8,000 last week to 287,000. Analysts had expected jobless claims to rise by 2,000 to 297,000 last week.
Investors now looked ahead to the release of the latest U.S. nonfarm payrolls report later Friday, for further indications on the strength of the recovery in the labor market.
Market analysts expect the data to show that the U.S. economy added 215,000 jobs in September, after a gain of 142,000 in August.
A strong U.S. nonfarm payrolls report was likely to add to speculation over when the Federal Reserve will begin to raise interest rates, while a weak number could boost gold by undermining the argument for an early rate hike.
Expectations that the Fed is growing closer to raising interest rates have boosted the dollar and weighed on precious metals in recent months.
A stronger U.S. dollar usually weighs on gold, as it dampens the metal's appeal as an alternative asset and makes dollar-priced commodities more expensive for holders of other currencies.
Elsewhere in metals trading, Comex, silver for December delivery fell 0.25% to $17.005 a troy ounce, while December copper added 0.19% to trade at $3.004 a pound.