Investing.com - Gold gained in early Asia on Friday as data from Japan pointed to relatively upbeat economic trends in July.
Gold for December delivery on the Comex division of the New York Mercantile Exchange was quoted at $1,126.10, up 0.31% a troy ounce, while silver futures changed hands at $14,500, up 0.58%. Copper futures for September rose 0.67% to $2.340 a pound.
In Japan, July national CPI was flat, a better showing than the 0.2% drop seen, while the unemployment rate fell to 3.3% from 3.4%. But household spending eased 0.2%, well below the 1.3% gain expected.
Just after those data sets, Japan reported July preliminary retail sales data showed a gain of 1.6%, better than the 1.1% rise seen.
Investors now looked ahead to the Federal Reserve's annual meeting of top central bankers and economists in Jackson Hole, Wyoming, due to begin later Thursday.
While Fed chair Janet Yellen is not expected to attend, Fed Governor Stanley Fischer is scheduled to participate in a panel discussion about U.S. inflation developments on Saturday.
His comments will be closely watched for further hints regarding the strength of the economy and on the timing of a Fed rate hike.
Minutes of the central bank's July meeting published last week showed that Fed officials expressed broad concerns about lagging inflation and the weak global economy.
Overnight, gold futures fell to the lowest levels of the session on Thursday, after data showed that the U.S. economy grew more than initially estimated in the second quarter, boosting optimism over the health of the economy and supporting the case for a U.S. interest rate hike this year.
The Commerce Department said the U.S. economy grew 3.7% in the three months ended June 30, above expectations for growth of 3.2%. Preliminary data initially pegged U.S. growth at 2.3% in the second quarter.
The data showed personal consumption rose 3.1% in the second quarter, meeting expectations and up from an initial estimate of 2.9%. Consumer spending typically accounts for nearly 70% of U.S. economic growth.
At the same time, the U.S. Department of Labor said the number of individuals filing for initial jobless benefits declined by 6,000 last week to 271,000. Analysts had expected initial jobless claims to fall by 3,000 to 274,000 last week.
First-time jobless claims have held below the 300,000-level for 25 consecutive weeks, which is usually associated with a firming labor market.
The upbeat data should strengthen expectations of a Federal Reserve interest rate hike as early as next month. The timing of a Fed rate hike has been a constant source of debate in the markets in recent months.
China's slowing economy and global market turmoil have created fresh uncertainty over whether the U.S. central bank will start hiking interest rates next month.
Some traders believe the U.S. central bank could postpone raising interest rates until December as officials are likely to remain concerned over global growth and inflation pressures due to China’s shock currency devaluation move and weak commodity prices.
The turmoil in markets began when China unexpectedly devalued the yuan on August 11, sparking fears over the condition of the economy.