Gold moves further away from $1,200, U.S. jobs data in focus

Investing.com - Gold prices moved further below the $1,200-level on Thursday, as investors turned their attention to Friday’s U.S. employment report for fresh indications on the strength of the economy and the timing of a U.S. rate increase.

On the Comex division of the New York Mercantile Exchange, gold futures for June delivery shed $8.10, or 0.68%, to trade at $1,182.20 a troy ounce during European morning hours after hitting a session low of $1,181.80.

A day earlier, gold dipped $2.90, or 0.24%, to close at $1,190.30. Futures were likely to find support at $1,168.40, the low from May 1, and resistance at $1,199.30, the high from May 5.

Also on the Comex, silver futures for July delivery dropped 13.1 cents, or 0.79%, to trade at $16.37 a troy ounce. On Wednesday, silver slumped 7.3 cents, or 0.44%, to end at $16.50.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.1% to trade at 94.10 early Thursday. The index hit 93.96 on Wednesday, the lowest level since February 19.

The drop in the dollar came after payroll processing firm ADP said non-farm private employment rose by 169,000 last month, below expectations for an increase of 200,000.

Later in the day, the U.S. was to release weekly data on initial jobless claims, after last week's report showed that the number of people who filed for unemployment assistance in the U.S. fell to the lowest level since 2000.

Investors also focused on Friday’s U.S. employment report, which was forecast to show a gain of 224,000 jobs in April, following an increase of just 126,000 in March.

A strong U.S. nonfarm payrolls report was likely to bring forward expectations on when the central bank will begin to raise rates, while a weak number could weigh on the dollar by undermining the argument for an early rate increase.

Recent economic reports have indicated that the economy has slowed since the start of the year prompting many investors to push back expectations on the timing of an initial rate hike by the Federal Reserve.

Elsewhere in metals trading, copper for July delivery inched down 1.3 cents, or 0.44%, to trade at $2.913 a pound. Copper lost 0.9 cents, or 0.31%, on Wednesday to settle at $2.926.

Prices remained supported amid mounting speculation policymakers in China will have to introduce further stimulus measures to jumpstart the economy amid lackluster growth.

The Asian nation is the world’s largest copper consumer, accounting for almost 40% of world consumption.