Investing.com - Gold prices were lower on Thursday, deepening their pullback from the strongest level in seven weeks as investors looked ahead to U.S. employment data to gauge how it will impact the Federal Reserve's view on monetary policy.
Comex gold futures for August were at $1,265.72 a troy ounce by 8:55AM ET (1255GMT), down $6.10, or about 0.5%. It fell to an overnight low of $1,256.60, its weakest since July 28.
Prices of the yellow metal ended marginally lower on Wednesday, as a recent rally to seven-week highs showed signs of fatigue.
Gold has been well-supported in recent weeks, hitting its highest since June 14 at $1,273.30 earlier this week, as fading expectations for a third Fed rate hike this year combined with deepening political turmoil in the White House boosted the appeal of the precious metal.
Investors were turning their attention to upcoming U.S. nonfarm payrolls data for fresh clues on the timing of the Fed's balance sheet reduction and its ability to raise interest rates again this year.
Elsewhere on the Comex, silver futures slumped 11.6 cents, or around 0.7%, to $16.61 a troy ounce. It rose to $16.96 on Wednesday, a level not seen since June 15.