Investing.com - Gold prices tumbled to a fresh five-year low in European morning hours on Friday, as data showing that U.S. jobless claims fell to the lowest level since 1973 and positive news from Greece weighed on the safe-haven metal.
On the Comex division of the New York Mercantile Exchange, gold futures for August delivery were down 0.96% at $1,083.40.
The August contract ended Thursday's session 0.24% higher at $1,094.10 an ounce.
Futures were likely to find support at $1,045.20 and resistance at $1,204.00, Thursday's high.
Gold prices dropped after the U.S. Department of Labor reported on Thursday that the number of individuals filing for initial jobless benefits in the week ending July 18 fell by 26,000 to 255,000 from the previous week’s total of 281,000.
Analysts had expected initial jobless claims to fall by 1,000 to 280,000 last week.
Gold has been under heavy selling pressure in recent months amid speculation the Fed will raise interest rates for the first time in eight years as soon as September.
Gold, which yields nothing and costs money to hold, is seen as a less attractive investment during times of rising interest rates.
The precious metal also weakened after a majority of Greek lawmakers voted in favor of a second set of reforms late Wednesday, signalling that negotiations on an €86 billion European Union bailout can begin. The country is aiming for a deal by the middle of next month.
The new measures include changes to Greek banking and an overhaul of the judiciary system.
Greece had passed an initial set of austerity measures imposed by its creditors last week. These were a mix of economic reforms and budget cuts demanded before bailout talks could continue.
Elsewhere in metals trading, silver futures for September delivery dropped 0.98% to $14.570 a troy ounce, while copper futures for September delivery slipped 0.17% to $2.381 a pound.