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Gold futures edge higher, eyes on U.S. jobs data

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Investing.com -

Investing.com - Gold prices edged higher in European morning hours on Friday, but gains were limited as demand for the greenback remained supported by Thursday's jobless claims data and as markets eyed an upcoming report on U.S. nonfarm payrolls.

On the Comex division of the New York Mercantile Exchange, gold futures for June delivery were up 0.25% at $1,184.90.

The June contract ended Thursday's session 0.68% lower at $1,182.20 an ounce.

Futures were likely to find support at $1,168.40, the low from May 1 and resistance at $1,199.30, the high from May 5.

The dollar strengthened after the U.S. Department of Labor reported on Thursday that the number of individuals filing for initial jobless benefits in the week ending May 2 rose by 3,000 to 265,000 from the previous week's total of 262,000.

Analysts had expected initial jobless claims to rise by 18,000 to 280,000 last week.

Investors were now looking ahead to Friday's U.S. nonfarm payrolls report for further indications on the strength of the U.S. job market.

A strong U.S. nonfarm payrolls report was likely to bring forward expectations on when the Federal Reserve will begin to raise rates, while a weak number could weigh on the dollar by undermining the argument for an early rate increase.

Recent economic reports have indicated that the economy has slowed since the start of the year prompting many investors to push back expectations on the timing of an initial rate hike by the Fed.

Elsewhere in metals trading, silver futures for July delivery advanced 0.42% to $16.368 a troy ounce, while copper futures for July delivery eased up 0.09% to $2.921 a pound.

Copper prices remained supported amid mounting speculation policymakers in China will have to introduce further stimulus measures to jumpstart the economy amid lackluster growth.

The Asian nation is the world's largest copper consumer, accounting for almost 40% of world consumption.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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