By Ira Iosebashvili 

Gold prices rose Friday, as investors positioned themselves in the safe-haven metal on rising political concerns in Europe.

Gold for February delivery settled up 0.7% at $1,176.40 a troy ounce on the Comex division of the New York Mercantile Exchange.

Market participants are bracing for Italy's referendum on constitutional reform, scheduled for Dec. 4. A rejection of Prime Minister Matteo Renzi's proposals to overhaul Italy's political institutions could destabilize the country's politics, with potential ramifications for its fragile banking system and the European economy, analysts said.

Austria will hold presidential elections on the same day.

Some investors buy gold on signs of political or economic uncertainty, believing the metal will hold its value better than other assets during turbulent times. The metal is likely to seem more attractive after a nearly 8% drop last month, said George Gero, a managing director at RBC Wealth Management.

While gold is "off the radar" for many investors, "bargain hunters and long term buyers appear to be picking away," Mr. Gero said.

Prices were bumpy for most of Friday's session, as investors weighed the latest U.S. jobs data. Employment growth was on-target and the jobless rate fell to 4.6%, its lowest since August 2007, a Labor Department report showed Friday.

At the same time, however, average hourly earnings for private sector workers unexpectedly declined last month, hinting at a possible soft spot in the economy. As well, more than 400,000 Americans dropped out of the labor force last month, the report showed.

"The headline numbers sound awesome, but once you get past that, it's kind of a mixed bag," said Bob Haberkorn, a broker at RJO Futures.

Write to Ira Iosebashvili at ira.iosebashvili@wsj.com

(END) Dow Jones Newswires

December 02, 2016 16:43 ET (21:43 GMT)

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