Investing.com - Gold prices edged higher on Friday, as investors remained cautious ahead of the release of a highly anticipated U.S. employment report later in the day.
On the Comex division of the New York Mercantile Exchange, gold futures for August delivery added 0.17% to $1,214.65.
The August contract ended Thursday’s session 0.17% lower at $1,212.60 an ounce.
Futures were likely to find support at $1,199.00, the low of May 31 and and a three-month low and resistance at $1,223.20, the high of May 27.
Investors were eyeing the release of U.S. nonfarm payrolls data later Friday for further indications on the strength of the job market after upbeat U.S. employment data was published on Thursday.
The U.S. Department of Labor said the number of individuals filing for initial jobless benefits fell by 1,000 to 267,000 last week. Analysts expected jobless claims to rise by 2,000 to 270,000 from the previous week’s 268,000.
The report came after payroll processing firm ADP said non-farm private employment rose by 173,000 in May, just below expectations for an increase of 175,000 but improving from 166,000 in April.
A better-than-expected nonfarm payrolls report would boost expectations for a rate hike this summer by the Federal Reserve.
Gold is sensitive to moves in U.S. rates, as a rise would lift the opportunity cost of holding non-yielding assets such as bullion.
Gold futures are up nearly 15% so far this year, but the yellow metal has been under pressure since the release of the minutes from the Fed's April meeting boosted expectations of a summer rate hike.
Elsewhere in metals trading, silver futures for July delivery gained 0.41% to $16.090 a troy ounce, while copper futures for July delivery jumped 1.01% to $2.091 a pound.