IV:Gold futures decline with U.S. jobs data in focus
Investing.com - Gold futures decline during European afternoon hours on Friday, as investors eyed the release of key U.S. jobs data later in the trading session, amid growing expectations for the Federal Reserve to soon begin tapering its stimulus program.
On the Comex division of the New York Mercantile Exchange, gold futures for December delivery traded at USD1,369.20 a troy ounce during European afternoon hours, down 0.28%.
The December contract settled down 1.22% at USD1,373.00 a troy ounce on Thursday.
Gold futures were likely to find support at USD1,318.10 a troy ounce, the low from August 15 and resistance at USD1,399.40, Thursday' high.
Speculation that the Fed could begin tapering its monthly bond purchases as soon as this month grew stronger after data on Thursday showed that U.S. sector activity expanded at the fastest rate since March 2011 in August.
The Institute of Supply Management said that its non-manufacturing purchasing managers' index rose to 58.6 in August, from a reading of 56.0 the previous month, hitting ta 29-month high.
In addition, the Department of Labor said the number of people filing for initial jobless benefits in the week ending August 30 fell by 9,000 to a seasonally adjusted 323,000, compared to forecasts for a decline of 2,000.
Investors were looking ahead to a highly-anticipated U.S. nonfarm payrolls report later in the day, as it was seen as key to the Fed’s decision on tapering.
Gold traders have closely been looking out for U.S. data reports recently to gauge if they will strengthen or weaken the case for the Fed to reduce its bond purchases.
Meanwhile, concerns over a U.S. military intervention against Syria’s government persisted, as the U.S. government was set to vote next week on President Barack Obama's proposal to launch a missile strike.
At a meeting in Russia, world leaders from the Group of 20 nations put pressure on President Obama to decide against launching military strikes in Syria, which many of them fear would hurt the global economy and push up oil prices.
Gold prices surged to a three-and-a-half month high of USD1,433.50 a troy ounce on August 28 as safe-haven buying picked up amid indications the U.S. was close to taking military action against Bashar al-Assad’s government.
Elsewhere on the Comex, silver for December delivery slid 0.37% to trade at USD23.170 a troy ounce, while copper for December delivery climbed 0.88% to trade at USD3.273 a pound.
