Investing.com - Gold and silver prices rallied to the highest levels of the session on Wednesday, after data showed that U.S. non-farm private employment rose less-than-expected in January, fuelling concern over the labor market.
On the Comex division of the New York Mercantile Exchange, gold futures for April delivery rallied to USD1,274.10 a troy ounce, the highest since January 27, before trimming gains to trade at USD1,271.20 an ounce during U.S. morning hours, up 1.6%.
Gold futures ended Tuesday’s session down 0.69% to settle at USD1,251.20 an ounce. Prices were likely to find support at USD1,240.60 a troy ounce, the low from February 3 and resistance at USD1,279.20, the high from January 26.
Meanwhile, silver for March delivery surged 3.5% to trade at USD20.10 a troy ounce, the most since January 24.
The March contract settled 0.07% higher on Tuesday to end at USD19.42 an ounce. Silver futures were likely to find support at USD19.06 a troy ounce, the low from February 3 and resistance at USD20.28, the high from January 24.
Payroll processing firm ADP said non-farm private employment rose by a seasonally adjusted 175,000 last month, below expectations for an increase of 180,000.
December’s figure was revised down to a gain of 227,000 from a previously reported increase of 238,000.
While not viewed as a reliable guide for the government jobs report due on Friday, February 7, it does give guidance on private-sector hiring.
The disappointing data cast doubt on the strength of the economic recovery and on how quickly the Federal Reserve will move to further slow its flow of monetary stimulus.
The central bank tapered its monthly asset purchase program by another USD10 billion to USD65 billion a month at its last policy meeting, citing improvements in the labor market.
The Fed said it will keep a close eye on economic indicators before deciding to wind down its stimulus program even further.
Elsewhere on the Comex, copper futures for March delivery rose 0.45% to trade at USD3.206 a pound.