On Thursday gold futures bounced off the previous session's three-month low, after U.S. President authorized air strikes against Islamic State militants in Syria.
Comex gold for December delivery tacked on $4.70, or 0.38%, to trade at $1,250.00 a troy ounce during European morning hours.
Yesterday, gold futures fell to $1,244.50, a level not seen since June 5, before settling at $1,245.30, down $3.20, or 0.26% due to a stronger U.S. dollar and expectations for an early hike in U.S. interest rates.
Futures were likely to find support at $1,241.20, the low from June 5 and resistance at $1,272.60, the high from September 8. Also on the Comex, silver for December delivery inched up 0.09%, or 1.7 cents, to trade at $18.94 a troy ounce.
The dollar remained well bid after a study by the San Francisco Federal Reserve suggested that investors' expectations for rate hikes lag those of the Fed.
On Wednesday U.S. President Barack Obama said in an address to the nation that the U.S. would conduct a "systematic campaign" of airstrikes against Islamic State militants in Syria.
Gains were limited as expectations for higher U.S. interest rates continued to undermine sentiment for the precious metal. Gold struggles to compete yield-bearing assets when interest rates are on the rise.
Market players looked ahead to the release of the weekly government report on initial jobless claims later in the session for further indications on the strength of the economy and the future path of monetary policy.
Elsewhere in metals trading, copper for December delivery tumbled 4.1 cents, or 1.3%, to trade at an 11-week low of $3.071 a pound after official data showed that Chinese inflation for August slowed to 2.0% on-year from 2.3% in July, below expectations for a reading of 2.2%.
The weaker than expected data underlined concerns about China's economy and sparked speculation policymakers in Beijing will have to introduce fresh stimulus to meet the government's 7.5% growth target. China is the world's largest copper consumer, accounting for nearly 40% of global demand.
