The price of gold was moving lower Friday morning as the US dollar was trading firm versus a basket of currencies ahead of the all important non-farm payroll data.
Gold for December delivery, the most actively traded contract, shed $6.40 to $1,709.10 an ounce. Yesterday, gold settled marginally lower on some upbeat macroeconomic data from the U.S. and China, and the dollar trading higher against a basket of major currencies. Most positive economic data has a negative impact on gold as the probability of further quantitative easing lessens, with very little scope for inflation trending up.
Data out of the U.S. showed private sector employment increased in October, while initial jobless claims dropped. Activity in the U.S. manufacturing sector expanded for the second consecutive month in October, with the index unexpectedly showing a modest increase.
Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, were unchanged at 1,336.30 tons.
Meanwhile, the U.S. dollar advanced back near a three-week high versus the euro, while paring recent losses against sterling. The buck was steady near a 4-month high versus the yen and moving higher against the Swiss franc.
In economic news, activity in euro zone's manufacturing sector decreased for the fifteenth consecutive month in October, though at a marginally slower rate than estimated earlier, as domestic market conditions remained subdued and trade flows deteriorated further, final data released by Markit Economics showed. The seasonally adjusted purchasing managers' index decreased to 45.4 in October from 46.1 in September. The latest reading was slightly higher than 45.3 seen in the preliminary estimates.
Meanwhile, Germany's manufacturing sector contraction in October was less severe than expected earlier, but activity dropped for the eighth consecutive month, final survey data released by Markit Economics revealed. The Markit/BME Germany Purchasing Managers' Index fell to 46 from 47.4 in September.
The prices of silver and platinum were trading lower in morning deals.
From the U.S., the Labor Department will release its non-farm payroll report for the month of October at 8.30 a.m.ET. Economists expect non-farm payrolls for October to increase by 125,000, while the unemployment rate is expected to edge up to 7.9 percent.
Later during the session, the Commerce Department is due to release its report on factory goods orders for September. Economists estimate a 4.9 percent increase in orders for factory goods following a 5.2 percent increase in August.
