Gold futures edge lower on Fed taper fears

Gold futures edged lower on Friday, ahead of a highly anticipated U.S. jobs report later in the day, as Thursday's upbeat economic data fuelled expectations for the Federal Reserve to soon begin tapering its stimulus program.

On the Comex division of the New York Mercantile Exchange, gold futures for February delivery traded at USD1,227.8 a troy ounce during European afternoon trade, down 0.33%. 

The February contract settled 1.23% lower on Thursday to end at USD1,231.9 a troy ounce. 

Gold futures were likely to find support at USD1,211.10 a troy ounce, Wednesday's low and resistance at USD1,250.80, Wednesday's high. 

Gold prices came under pressure on Thursday, after the U.S. Commerce Department said gross domestic product increased at a seasonally adjusted annual rate of 3.6% in the three months to September, above expectations for growth of 3.0% and up from a preliminary estimate of 2.8%. 

Separately, the U.S. Department of Labor said the number of individuals filing for initial jobless benefits last week fell by 23,000 to a seasonally adjusted 298,000, from 321,000 in the previous week whose figure was revised up from 316,000.

The strong data added to expectations the Fed could begin tapering its montly asset purchases in the near future. 

The Fed, which holds its next meeting on December 17-18, has said the timing of its tapering depends on the health of the labor and housing markets.

Gold is down approximately 28% this year, heading for the first annual loss in 13 years, as solid U.S. economic data underlined expectations the Fed will begin curbing stimulus. 

Elsewhere on the Comex, silver for March delivery declined 0.43% to trade at USD19.485 a troy ounce, while copper for March delivery gained 0.50% to trade at USD3.246 a pound.