© Reuters. Gold regains some ground on weaker dollar Investing.com – Gold prices rose in European morning hours on Friday, as the U.S. dollar softened mildly amid profit-taking, although the precious metal’s gains were expected to remain limited.
On the Comex division of the New York Mercantile Exchange, for December delivery were up 0.37% at $ 1,170.40.
The December contract ended Thursday’s session 0.09% lower at $ 1,166.10 an ounce.
Futures were likely to find support at $ 1,154.90, the low from October 13 and resistance at $ 1,179.10, the high from October 20.
The dollar had strengthened broadly after the U.S. Department of Labor reported on Thursday that in the week ending October 17 increased by 3,000 to 259,000 from the previous week’s total of 256,000.
Analysts had expected jobless claims to rise by 9,000 to 265,000.
In addition, the U.S. National Association of Realtors said that increased by 4.7% to 5.55 million units last month from 5.30 million in August. Analysts ad expected existing home sales to rise 1.4% to 5.38 million units in September.
The upbeat data fuelled renewed speculation that the Federal Reserve could raise interest rates before the year end.
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.
The greenback was also boosted after European Central Bank President Mario Draghi said the ECB will “reexamine” its monetary policy in December, hinting at the possibility for further easing measures.
Speaking at the ECB’s monthly press conference, Mr. Draghi added that the ECB’s quantitative easing program is set to run until 2016 or beyond if necessary.
Mr. Draghi also said that downside risks have emerged for growth and the inflation outlook in the euro area.
The comments came shortly after the ECB said it was maintaining its benchmark interest rate at a record-low 0.05%, in line with market expectations.
Elsewhere in metals trading, for December delivery gained 0.78% to $ 15.950 a troy ounce, while for December delivery edged up 0.19% to $ 2.388 a pound.
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Gold futures rise as U.S. dollar softens
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