Gold languished near a three-month low on Thursday as investors positioned for a US rate hike in December, while waiting for more cues from Federal Reserve officials speaking later in the session.
Spot gold was little changed at $1,087.10 an ounce by 0034 GMT. It had dropped to $1,083.65 in the previous session, the lowest since August 7.
The metal had slid for ten out of 11 sessions as of Wednesday.
A strong US nonfarm payrolls report last week bolstered market expectations that the Fed would hike rates for the first time in nearly a decade at its next policy meet in December.
Higher rates would dent demand for non-interest-paying gold, while boosting the dollar.
Traders will be eyeing remarks by at least six Fed officials at various events later in the day for clues about economic growth and the US central bank’s monetary policy.
Chair Janet Yellen and Vice Chair Stanley Fischer will also be speaking.
Focus will also be on economic data. New US applications for unemployment benefits likely fell last week, almost reversing the prior week’s increase, suggesting the labour market recovery continued to gain momentum in early November.
Investor flows have not been encouraging for gold. Assets in SPDR Gold Trust, the top gold-backed exchange-traded fund, fell to 663.43 tonnes on Tuesday – the lowest since September 2008 when Lehman Brothers filed for bankruptcy, kicking off a global financial crisis.
The technical picture has also deteriorated, with the next major support level expected at a 5-1/2-year low of $1,077 reached in July.