Gold futures traded lower in early Asian trade on Friday as traders digested the region some strengths U.S. economic data that could give the Federal Reserve room to begin soon reduce its quantitative easing program.
On the Comex division of the New York Mercantile Exchange, gold futures for October delivery fell 0.28% to EUR1, 368.80 a troy ounce during Asian trading on Friday. The October contract settled lower by 1.22 % to EUR1, 372.60 an ounce on Thursday.
Gold futures were likely to find support at USD1, 351.90 a troy ounce , the low of August 20 and resistance at USD1, 416.30 , Tuesday's high.
The economy of the U.S. press on Thursday The ADP National Employment Report showed that more than 176,000 private sector jobs last month, but missed estimates calling for the addition of 180,000 new jobs. The July number was revised down 198,000 to 200,000.
The Labor Department said initial claims for unemployment benefits fell by 9,000 last week to 323,000 . The four-week moving average , less volatile fell 3000-328500, the lowest level since October 2007. The Department of Labor publishes the August employment report Friday before the opening of U.S. markets.
The Institute for Supply Management said its services in August purchasing managers index rose to 58.6 % last month from 56.0 % in July. It's good for the best reading since the index was created in 2008 . Economists expected a reading of 55 % in August.
These data points , especially the ADP report and jobless claims could be a precursor of a high proportion of non-agricultural employment in August If the number of jobs in August was surprisingly high , many traders believe it is inevitable that the Fed will start reducing its asset purchase program in late September.