Gold gains as U.S. jobs data falls short of market expectations
Published Jun 05, 2013 12:57PM ET
On the Comex division of the New York Mercantile Exchange, gold futures for August delivery were up 0.42% at USD1,403.05 a troy ounce in U.S. trading on Wednesday, up from a session low of USD1,395.25 and down from a high of USD1,409.85 a troy ounce.
Gold futures were likely to test support USD1,388.65 a troy ounce, Tuesday's low, and resistance at USD1,416.35, Monday's high.
Payroll processor ADP reported earlier that non-farm private payrolls rose by 135,000 in May, well 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 Federal Reserve has said it will pay close attention to economic indicators as it decides when it will scale back stimulus measures, especially those dealing with the labor market
Stimulus tools tend to weaken the dollar, which boosts gold's attraction as a hedge.
Elsewhere, the Institute of Supply Management said its U.S. non-manufacturing purchasing manager's index rose to 53.7 in May from 53.1 in April.
Analysts had expected the index to rise to 53.5, which gave the dollar some support and capped gold's gains..
In a separate report, the Commerce Department said U.S. factory orders rose 1% in April, missing expectations for an increase of 1.6%.
Elsewhere on the Comex, silver for July delivery was up 0.78% at USD22.583 a troy ounce, while copper for July delivery was up 0.01% and trading at USD3.369 a pound.
Get The News You Want
Written By: Investing.com
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.