Investing.com - Gold prices rose to the highest levels of the session on Thursday, after data showed that the number of people who filed for unemployment assistance in the U.S. last week rose to a six-week high.
On the Comex division of the New York Mercantile Exchange, gold futures for December delivery rose to a daily high of $1,167.30 a troy ounce, before trimming gains to last trade at $1,162.70 during U.S. morning hours, up $3.60, or 0.31%.
A day earlier, prices lost $3.90, or 0.34%, to settle at $1,159.10. Gold hit $1,130.40 an ounce on November 7, a level not seen since April 2010.
Futures were likely to find support at $1,130.45, the low from November 7, and resistance at $1,177.50, the high from November 10.
The U.S. Department of Labor said the number of individuals filing for initial jobless benefits increased by 12,000 last week to 290,000. Analysts had expected jobless claims to rise by 4,000 to 282,000 last week.
Continuing jobless claims in the week ended November 1 rose to 2.392 million from 2.356 million in the preceding week. Analysts had expected continuing claims to decline to 2.320 million.
The four-week moving average was 285,000, an increase of 6,000 from the previous week’s total of 279,000. The monthly average is seen as a more accurate gauge of labor trends because it reduces volatility in the week-to-week data.
Comex gold prices have been under heavy selling pressure in recent weeks amid speculation the Federal Reserve is moving closer to raising interest rates for the first time in eight years after ending its monthly bond-buying program, also known as quantitative easing, last month.
Expectations of higher borrowing rates going forward is considered bearish for gold, as the precious metal struggles to compete with yield-bearing assets when rates are on the rise.
Also on the Comex, silver futures for December delivery inched up 6.5 cents, or 0.42%, to trade at $15.68 a troy ounce. Prices fell to $15.04 an ounce on November 7, the weakest level since February 2010.
Elsewhere in metals trading, copper for December delivery tacked on 0.1 cents, or 0.02%, to trade at $3.026 a pound, after data showed that China's factory output grew less than expected in October, adding to pressure on policymakers to introduce broad-based stimulus measures.
Data released earlier showed that industrial production in China rose at an annualized rate of 7.7% in October, missing estimates for a gain of 8.0% and the second smallest increase since 2009.
Fixed asset investment, which tracks construction activity, rose 15.9% in the January-October period, the slowest pace since 2001.
The weaker than expected data underlined concerns about China's economy and sparked speculation policymakers in Beijing will have to introduce fresh stimulus to meet the government's 7.5% growth target.
China is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.