Investing.com - Gold prices turned lower on Thursday, after positive U.S. data, but losses were expected to remain limited as U.S. political tensions continued to weigh on the dollar and traders were cautious ahead of the Jackson Hole summit later in the day.
Comex gold futures were down around $2.48, or about 0.19%, to $1,292.27 a troy ounce by 08:50 a.m. ET (12:50 GMT).
Gold prices weakened after the U.S. Labor Department said the number of people who filed for unemployment assistance last week rose less than expected.
But sentiment on the greenback remained fragile after U.S. President Donald Trump said on Tuesday that he would be willing to shut down the government in order to get the funding needed for his proposed wall along the U.S.-Mexico border.
Trump also warned that he might terminate the NAFTA trade treaty with Canada and Mexico.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was steady at 93.18.
The precious metal is sensitive to moves in U.S. rates, which lift the opportunity cost of holding non-yielding assets such as bullion. A gradual path to higher rates is seen as less of a threat to gold prices than a swift series of increases.
Market participants were also looking ahead to this week's annual meeting of top central bankers and economists in Jackson Hole, Wyoming, where the heads of the U.S. and European central banks will be making keynote speeches.
Elsewhere on the Comex, silver futures dropped 10 cents or about 0.60% to $16.94 a troy ounce.