Investing.com - Gold prices fell in Asia on Friday ahead of U.S. jobs data that is seen as icing on the cake for a Fed rate hike this month.
Nonfarm payrolls are seen up by 175,000 in November, deemed enough by most analysts to assure the Fed that the labor market continues to tighten, adding pressure on wages.
Gold futures for February on the Comex division of the New York Mercantile Exchange rose 0.57% to $1,176.05 a troy ounce. Silver futures on the Comex gained 0.80% to $16.638 a troy ounce, while copper futures dropped 0.72% to $2.616 a pound.
Overnight, gold price fell after the release of upbeat U.S. manufacturing activity data offset more disappointing U.S. jobless claims report.
The Institute for Supply Management said its manufacturing activity index rose to 53.2 last month from October’s reading of 51.9. Analysts had forecast a smaller increase to 52.2.
The report came after the U.S. Department of Labor said that initial jobless claims in the week ending November 26 increased by 17,000 to 268,000 from the previous week’s total of 251,000. Analysts had expected jobless claims to rise by just 2,000 to 253,000 last week.
The data made the case that the Federal Reserve will take a more aggressive approach on monetary policy this month. The Fed has been loathe to raise interest rates, during the Obama administration, because of tepid economic performance during the "recovery" from the Great Recession of 2007. U.S.
Market anticipation of so-called "tighter" monetary policy weighs heavily on gold, which competes with yield-bearing bonds and other instruments whenever borrowing costs rise.