Investing.com - Gold prices were modestly higher on Thursday, after data showed that the number of people who filed for unemployment assistance in the U.S. last week rose to the highest level in almost five months, dampening optimism over the strength of the economy and dimming prospects for higher interest rates.
The U.S. Department of Labor said the number of individuals filing for initial jobless benefits increased by 15,000 last week to 297,000 from the previous week’s total of 282,000. Analysts had expected initial jobless claims to fall by 7,000 to 275,000 last week.
Minutes of the Federal Reserve's June policy meeting published Wednesday showed that policymakers wanted to see more signs of a strengthening U.S. economy before raising interest rates.
Gold futures for August delivery on the Comex division of the New York Mercantile Exchange tacked on $1.60, or 0.14%, to trade at $1,165.10 a troy ounce during U.S. morning hours.
A day earlier, gold fell to $1,145.90, a level not seen since March 18, before recovering to end at $1,163.50, up $10.90, or 0.95%. Futures were likely to find support at $1,142.40, the low from March 17, and resistance at $1,168.50, the high from July 7.
Meanwhile, investors continued to monitor developments surrounding Greece's debt crisis and movements in Chinese stock markets.
The Greek government is expected to present a credible set of reform proposals by midnight on Thursday, after requesting a new three-year bailout from its euro zone creditors on Wednesday.
Whether European leaders accept Greece's request for more emergency loans at an emergency summit on Sunday will depend on whether Prime Minister Alexis Tsipras makes a drastic turnaround on pension cuts, tax increases and other austerity measures after five months of negotiations.
Failure to reach an agreement by Sunday would increase the likelihood of Greece falling into bankruptcy and leaving the single currency union.
Also on the Comex, silver futures for September delivery jumped 28.5 cents, or 1.88%, to trade at $15.45 a troy ounce.
Elsewhere in metals trading, copper for September delivery rallied 6.1 cents, or 2.44%, to trade at $2.558 a pound during New York morning hours. On Wednesday, copper tumbled to $2.381, a level not seen since July 2009.
The Shanghai Composite rallied nearly 6% on Thursday as authorities increased scrutiny of short selling and eased rules for insurers to invest in blue-chips stocks in wake of China’s recent stock plunge.
Equity markets in China have lost more than 30% over the past three weeks, roiling global financial markets.
Market players are concerned that the plunge in the stock market could spread to other parts of the Chinese economy, triggering fears that the Asian nation's demand for the industrial metal will decline.
China is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.