Gold futures edge up however stay near Three-week trough

© Reuters. Gold gains some ground but remains under pressure amid U.S. rate hike talk

Investing.com – Gold prices edged higher in European morning hours on Friday, helped by a softer U.S. dollar, but the precious metal remained close to a three-week low amid fresh indications the Federal Reserve could raise interest rates before the end of the year.

On the Comex division of the New York Mercantile Exchange, for December delivery were up 0.17% at $ 1,149.40.

The December contract ended Thursday’s session 2.45% lower at $ 1,147.30 an ounce.

Futures were likely to find support at $ 1,138.70, the low from October 8 and resistance at $ 1,162.00, Thursday’s high.

The dollar came under pressure after the Commerce Department reported on Thursday that grew at an annual rate of 1.5% in the three months to September, missing expectations for growth of 1.6%.

In addition, the U.S. National Association of Realtors said its dropped 2.3% last month, disappointing expectations for a gain of 1.0%.

The greenback had strengthened broadly after said that officials might make a decision to raise interest rates at their December meeting.

Expectations of higher borrowing rates is considered bearish for gold, as the precious metal struggles to compete with yield-bearing assets when rates are on the rise.

Market participants were now looking ahead to reports on employment costs and U.S. personal spending due later in the day, for further indications on the strength of the economy.

Elsewhere in metals trading, for December delivery gained 0.58% to $ 15.640 a troy ounce, while for December delivery advanced 0.44% to $ 2.331 a pound.

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Gold futures edge up however stay near Three-week trough