Investing.com - Gold prices slipped lower on Friday, as upbeat U.S. data released in the previous session lent support to the U.S. dollar and as the European Central Bank left the door open for further stimulus measures.
On the Comex division of the New York Mercantile Exchange, gold futures for August delivery declined 0.37% to $1,326.05.
The August contract ended Thursday’s session 0.89% higher at $1,331.00 an ounce.
Futures were likely to find support at $1,312.80, Thursday’s low and resistance at $1,341.40, the high from July 14.
Sentiment strengthened mildly after ECB President Mario Draghi said on Thursday that European markets weathered the post-Brexit volatility with “encouraging resilience”, but reiterated that the central bank is ready to act by using all the instruments available under its mandate if necessary.
The comments came after the central bank left its benchmark interest rate unchanged at a record-low 0.0% in a widely expected move.
Separately, the U.S. dollar remained supported after positive U.S. data on Thursday boosted optimism over the strength of the economy.
Data showed that U.S. existing home sales increased unexpectedly by 1.1% in June to 5.57 million units, while a separate report showed that U.S. jobless claims fell unexpectedly by 1,000 to 253,000 last week.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was steady at 96.96, not far from Wednesday’s four-month highs of 97.37.
The upbeat data added to expectations for the Federal Reserve to raise interest rates in the near future.
Gold is sensitive to moves in U.S. rates. However, a gradual path to higher rates is seen as less of a threat to gold prices than a swift series of increases.
Elsewhere in metals trading, silver futures for September delivery slid 0.39% to $19.737 a troy ounce, while copper futures for September delivery declined 0.69% to $2.242 a pound.