Investing.com - Gold futures edged lower during European morning trade on Thursday, as investors eyed upcoming data on U.S. employment as well as the conclusion of the European Central Bank's policy meeting.
On the Comex division of the New York Mercantile Exchange, gold for December delivery traded at $1,214.20 a troy ounce during European morning hours, down $1.30 from a closing price of $1,215.50 on Wednesday.
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.
Also on the Comex, silver for December delivery shed 14.1 cents to trade at $17.11 a troy ounce. Futures slumped to a four-year low of $16.85 on Tuesday.
Investors looked ahead to the release of the latest U.S. nonfarm payrolls report on 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.
Market players are also awaiting the European Central Bank's policy meeting later in the day for further details on the central bank's plan to purchase asset-backed securities, first announced in September.
Elsewhere in metals trading, copper for December delivery dipped 1.5 cents to trade at $3.021 a pound.
Appetite for growth-linked assets weakened after a slew of disappointing manufacturing reports on Wednesday showed that factory activity in the U.S. slowed more than expected last month, Germany’s manufacturing sector slid into contraction territory for the first time in 14 months, while activity in China stalled.
Concerns over unrest in Hong Kong and a confirmed Ebola diagnosis in the U.S. also contributed to the risk-off mood.