Gold futures hit session high after weak ADP jobs report
Investing.com
Published Jun 05, 2013 09:06AM ET
On the Comex division of the New York Mercantile Exchange, gold futures for August delivery traded at USD1,402.75 a troy ounce during U.S. morning hours, up 0.4% on the day.
Comex gold prices rose by as much as 0.8% earlier in the day to hit a session high of USD1,408.35 a troy ounce.
Gold futures were likely to find support at USD1,355.55 a troy ounce, the low from May 23 and near-term resistance at USD1,421.25, the high from May 31.
Gold prices shot up to the highest level of the session after payroll processing firm ADP said that non-farm private employment rose by a seasonally adjusted 135,000 in May, below expectations for an increase of 165,000.
The previous month’s figure was revised down to a gain of 113,000 from a previously reported increase of 119,000.
The data fuelled uncertainty over whether the Federal Reserve will scale back its asset purchase program this year.
Investors are now looking ahead to Friday’s closely watched report on U.S. nonfarm payrolls for further hints regarding the strength of the U.S. economy and the need for further stimulus from the Fed.
Moves in the gold price this year have largely tracked shifting expectations as to whether the U.S. central bank would end its bond-buying program sooner-than-expected.
Elsewhere on the Comex, silver for July delivery added 0.75% to trade at USD22.58 a troy ounce, while copper for July delivery rose 0.5% to trade at USD3.385 a pound.
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Written By: Investing.com
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