Investing.com - Gold prices remained lower on Wednesday, despite the release of mostly disappointing U.S. data on jobless claims and durable goods orders.
On the Comex division of the New York Mercantile Exchange, gold futures for February delivery dipped 90 cents, or 0.08%, to trade at $1,196.90 a troy ounce during U.S. morning hours.
A day earlier, Comex gold prices inched up $1.20, or 0.1%, to settle at $1,197.80 an ounce.
Futures were likely to find support at $1,177.00, the low from November 20, and resistance at $1,208.20, the high from November 21.
The U.S. Department of Labor said the number of individuals filing for initial jobless benefits increased by 21,000 last week to hit an 11-week high of 313,000. Analysts had expected jobless claims to fall by 5,000 to 287,000 last week.
The number of Americans applying for new jobless benefits rose above the 300,000-level for the first time in 11 weeks, indicating the labor market recovery is losing momentum.
A separate report showed that total durable goods orders, which include transportation items, increased by a seasonally adjusted 0.4% last month, compared to expectations for a decline of 0.4%.
Core durable goods orders, excluding volatile transportation items, declined by a seasonally adjusted 0.9% in October, disappointing forecasts for a 0.5% gain.
Also Thursday, the Commerce Department said that personal spending rose 0.2% last month, below expectations for an increase of 0.4%, while personal income rose 0.2% in October, missing forecasts for 0.4%.
The core PCE price index rose at an annualized rate of 1.6% in October, higher than forecasts for 1.5%, after rising at a rate of 1.5% in the preceding month.
The Federal Reserve uses core PCE as a tool to help determine whether to raise or lower interest rates, with the aim of keeping inflation at a rate of 2% or below.
Gold prices are likely to remain vulnerable in the near-term amid indications a strengthening U.S. economic recovery will force the Federal Reserve to start raising interest rates sooner and faster than previously thought.
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 March declined 0.3 cents, or 0.02%, to trade at $16.60 a troy ounce.
Elsewhere in metals trading, copper for March delivery slumped 1.6 cents, or 0.55%, to trade at $2.961 a pound. On Tuesday, Comex copper prices fell to $2.935, the lowest level since March 19 amid ongoing concerns over the health of the global economy.
Copper is sensitive to the economic growth outlook because of its widespread uses across industries.