Investing.com - Gold prices held steady on Friday, as a higher U.S. dollar weighed on the precious metal although investors remained cautious ahead of U.S. retail sales and consumer sentiment data, as well as a speech by Federal Reserve Chair Janet Yellen due later in the day.
On the Comex division of the New York Mercantile Exchange, gold futures for December delivery were little changed at $1,257.35.
The December contract ended Thursday’s session 0.30% higher at $1,257.60 an ounce.
Futures were likely to find support at $1,251.70, Wednesday’s low and resistance at $1,265.30, the high from October 6.
Gold prices had regained some ground on Thursday thanks to a weaker U.S. dollar, but the greenback moved back higher on Friday morning.
The dollar was still supported by the minutes of the Federal Reserve’s September policy meeting released on Wednesday, which showed that several voting members of the policy committee judged a rate hike would be warranted "relatively soon" if the U.S. economy continued to strengthen.
Gold is sensitive to moves in U.S. rates, which lift the opportunity cost of holding non-yielding assets such as bullion.
The U.S. dollar was also helped by data on Thursday showing that U.S. initial jobless claims held steady at 246,000 in the week ending October 8. Analysts expected jobless claims to rise by 8,000.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.30% at 97.83, just off Thursday’s seven-month high of 98.12.
A stronger U.S. dollar usually weighs on gold, as it dampens the metal's appeal as an alternative asset and makes dollar-priced commodities more expensive for holders of other currencies.
Elsewhere in metals trading, silver futures for December delivery added 0.17% to $17.487 a troy ounce, while copper futures for December delivery gained 0.38% to $2.128 a pound.