Investing.com - Gold prices edged higher tracking solid German sentiment data on Friday though gains were cautious amid sentiments that Federal Reserve stimulus programs that have supported the yellow metal over the recent past are on their way out soon.
Stimulus tools such as the Fed's USD85 billion in monthly bond purchases aim to spur recovery by driving down interest rates, weakening the U.S. dollar in the process and thus making gold an attractive hedge.
Gold and the dollar tend to trade inversely with one another.
On the Comex division of the New York Mercantile Exchange, gold futures for December delivery traded at USD1,244.30 during U.S. afternoon hours, up 0.06%.
Gold prices hit a session low of USD1,240.50 a troy ounce and high of USD1,248.20 a troy ounce.
Gold futures were likely to find support at USD1,235.90 a troy ounce, Thursday's low, and resistance at USD1,293.60, the high from Nov. 14.
The December contract settled down 1.14% at USD1,243.60 a troy ounce on Thursday.
Gold prices rose as the dollar softened after the Ifo Institute for Economic Research reported earlier that Germany's business climate index rose to a 19-month high of 109.3 in November from 107.4 in October.
Analysts were expecting the index to rise to 107.7 this month, and the better-than-expected reading sparked hopes for a more robust Germany recovery.
Also in Germany, data revealed the country's gross domestic product expanded 0.3% in the third quarter, in line with expectations.
The news strengthened the euro against the dollar, often a recipe for rising gold prices as the yellow metal tends to gain when the greenback softens.
The euro saw added demand after European Central Bank President Mario Draghi on Thursday downplayed recent media reports that monetary authorities were considering cutting deposit rates into negative territory.
Capping gains, however, were ongoing sentiments that the Federal Reserve will announce plans to trim its monthly asset-purchasing program in the coming months provided recovery continues gaining steam.
On Thursday, the Department of Labor said on Thursday that the number of individuals filing for initial jobless benefits in the U.S. last week fell by 21,000 to a seasonally adjusted 323,000, beating expectations for a decline of 9,000.
Elsewhere on the Comex, silver for December delivery was down 0.36% at USD19.862 a troy ounce, while copper for December delivery was up 0.75% and trading at USD3.216 a pound.
Stimulus tools such as the Fed's USD85 billion in monthly bond purchases aim to spur recovery by driving down interest rates, weakening the U.S. dollar in the process and thus making gold an attractive hedge.
Gold and the dollar tend to trade inversely with one another.
On the Comex division of the New York Mercantile Exchange, gold futures for December delivery traded at USD1,244.30 during U.S. afternoon hours, up 0.06%.
Gold prices hit a session low of USD1,240.50 a troy ounce and high of USD1,248.20 a troy ounce.
Gold futures were likely to find support at USD1,235.90 a troy ounce, Thursday's low, and resistance at USD1,293.60, the high from Nov. 14.
The December contract settled down 1.14% at USD1,243.60 a troy ounce on Thursday.
Gold prices rose as the dollar softened after the Ifo Institute for Economic Research reported earlier that Germany's business climate index rose to a 19-month high of 109.3 in November from 107.4 in October.
Analysts were expecting the index to rise to 107.7 this month, and the better-than-expected reading sparked hopes for a more robust Germany recovery.
Also in Germany, data revealed the country's gross domestic product expanded 0.3% in the third quarter, in line with expectations.
The news strengthened the euro against the dollar, often a recipe for rising gold prices as the yellow metal tends to gain when the greenback softens.
The euro saw added demand after European Central Bank President Mario Draghi on Thursday downplayed recent media reports that monetary authorities were considering cutting deposit rates into negative territory.
Capping gains, however, were ongoing sentiments that the Federal Reserve will announce plans to trim its monthly asset-purchasing program in the coming months provided recovery continues gaining steam.
On Thursday, the Department of Labor said on Thursday that the number of individuals filing for initial jobless benefits in the U.S. last week fell by 21,000 to a seasonally adjusted 323,000, beating expectations for a decline of 9,000.
Elsewhere on the Comex, silver for December delivery was down 0.36% at USD19.862 a troy ounce, while copper for December delivery was up 0.75% and trading at USD3.216 a pound.