By Stephanie Yang and Katherine Dunn
Gold prices rose on Thursday, reversing losses after the precious metal fell to its lowest price since Britain's decision to leave the European Union.
Gold for December delivery settled up 0.4% to $1,317.10 a troy ounce on the Comex division of the New York Mercantile Exchange, breaking a two-day losing streak.
The weak economic data tempered expectations that the Federal Reserve could raise interest rates as early as September. Comments from Fed officials in the past week had increased speculation of an imminent interest-rate increase and weighed on the price of gold.
However, Bob Haberkorn, senior market strategist at RJO Futures, said the move higher in gold was "pretty tame" given the discouraging manufacturing number.
Traders will be watching the monthly nonfarm payrolls data on Friday, which could provide further insight into whether the central bank will raise interest rates in the coming months. The coming release of further important economic data likely put a cap on gold's gains Thursday, Mr. Haberkorn said.
"There's just hesitation right now ahead of jobs data to establish too big of positions," he said.