On Thursday gold futures were hovering near four-week lows, amid concerns the Federal Reserve will increase interest rates
when it meets on September 16-17.
Comex gold for December delivery added $4.30, or 0.39%, to trade at $1,106.30 a troy ounce during European morning hours.
On Wednesday, the metal tumbled to $1,100.10, a level not seen since August 11, after data showed that the number of job openings in the U.S. climbed to the highest level on record in July.
The report spurred optimism over the health of the labor market and supported the case for a rate hike later this month. The timing of a Fed rate hike has been a constant source of debate in the markets in recent months.
Gold fell to a five-and-a-half year low of $1,072.30 on July 24 amid speculation the Fed will raise interest rates in September for the first time since 2006.
Expectations of higher borrowing rates going forward is considered bearish for gold, as the precious metal struggles to compete with yield-bearing assets when rates are on the rise.
Elsewhere, Comex copper for December delivery climbed 1.9 cents, or 0.77%, to trade at $2.456 a pound, not far Wednesday's seven-week high.
The gains were driven by soft China inflation data which strengthened expectations that Beijing will implement fresh stimulus soon for the world's second largest economy.
Government data signaled that Chinese producer prices fell by a more-than-expected 5.9% in August, the 42nd straight monthly decline and the worst reading since October 2009.
Consumer prices climbed 2.0% in August,
above expectations for 1.9% and up from 1.6% in July.
Non-food inflation remained subdued at 1.1%, unchanged from a month earlier.
The key takeaway for investors was that the rise wouldn’t prevent China’s central bank from further monetary easing, a positive for markets.
“Despite the pickup, the CPI figure still isn’t a threat for Beijing to change its policy stance, especially when factory-gate prices remain in deflationary territory. China’s central bank is expected to keep easing its monetary policy throughout the year,” said Fan Zhang, an economist with RHB Research.
Chinese Premier Li Keqiang also said Thursday that China had the
capacity to achieve major economic targets this year.
“The Chinese economy will not have a hard landing,” said Mr. Li, in a speech at the World Economic Forum in the northeastern city of Dalian.
