Investing.com - Gold prices regained some ground in European morning hours on Friday, but remained within close distance of a five-and-a-half year low as expectations for a December rate hike in the U.S. continued to lend broad support to the greenback.
On the Comex division of the New York Mercantile Exchange, gold futures for December delivery were up 0.23% at $1,080.40.
The December contract ended Thursday's session 0.86% higher at $1,077.90 an ounce.
Futures were likely to find support at $1,065.10, the low from November 17 and a five-and-a-half year low and resistance at $1,092.40, the high from November 16.
The greenback remained supported after the minutes of the Federal Reserve's October meeting showed on Wednesday that a majority of board members are in favor of a December rate hike.
"While no decision had been made, it may well become appropriate to initiate the normalization process at the next meeting," the minutes said.
Upbeat U.S. economic reports released on Thursday added to expectations for a U.S. rate hike before the end of the year.
The U.S. Department of Labor reported on Thursday that the number of individuals filing for initial jobless benefits in the week ending November 14 declined by 5,000 to 271,000 from the previous week’s total of 276,000.
Separately, the Federal Reserve Bank of Philadelphia said that its manufacturing index improved to 1.9 this month from October's reading of -4.5.
Expectations of higher borrowing rates is considered bearish for gold, as the precious metal struggles to compete with yield-bearing assets when rates are on the rise.
Elsewhere in metals trading, silver futures for December delivery slipped 0.19% to $14.195 a troy ounce, while copper futures for December delivery gained 0.33% to $2.083 a pound.