Investing.com - Gold prices slipped lower on Friday, as the U.S. dollar remained supported after the European Central Bank’s most recent policy decision and as investors turned their focus to the upcoming Federal Reserve meeting next week.
On the Comex division of the New York Mercantile Exchange, gold futures for February delivery were down 0.18% at $1,170.35.
The February contract ended Thursday’s session 0.43% lower at $1,172.40 an ounce.
Futures were likely to find support at $1,157.00, the low from December 5 and a 10-month low and resistance at $1,186.70, the high from December 5.
The U.S. dollar strengthened broadly after the ECB said at its monthly policy meeting on Thursday that it would extend its asset purchase program for an additional nine months.
Beyond the program’s scheduled end in March 2017, the central bank said net asset purchases are intended to continue at a monthly pace of €60 billion until the end of December 2017, or beyond, if necessary.
In addition, the ECB left its benchmark interest rate unchanged at a record-low of zero, in line with forecasts.
Meanwhile, the dollar also found support after the U.S. Labor Department said initial jobless claims fell by 10,000 to 258,000 in the week ending December 2, in line with expectations.
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.
Sentiment on the greenback remained somewhat fragile however ahead of the Fed’s policy meeting next week, despite sustained expectations for a rate hike.
Elsewhere in metals trading, silver futures for March delivery slid 0.37% to $17.032 a troy ounce, while copper futures for March delivery gained 0.72% to $2.645 a pound.