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Gold turns lower after robust ADP jobs data

Published 07/02/2014, 08:33 AM
Updated 07/02/2014, 08:33 AM
Gold futures erase gains after robust ADP jobs report

Investing.com - Gold futures turned lower on Wednesday, after data showed that U.S. non-farm private employment rose by the most since November 2012 last month.

On the Comex division of the New York Mercantile Exchange, gold for August delivery dipped 0.17%, or $2.30, to trade at $1,324.30 a troy ounce during U.S. morning hours. Prices held in a tight range between $1,322.20 and $1,329.90.

Gold rose to $1,334.90 on Tuesday, the most since March 24, before trimming gains to settle at $1,326.60, up 0.35%, or $4.60.

Prices were likely to find support at $1,305.40, the low from June 25 and resistance at $1,339.10, the high from March 21.

Also on the Comex, silver for September delivery shed 0.49%, or 10.4 cents, to trade at $21.01 a troy ounce. Prices rallied to $21.21 on Tuesday, the highest since March 18.

Gold erased gains after payroll processing firm ADP said non-farm private employment rose by a seasonally adjusted 281,000 last month, the highest since November 2012 and easily surpassing expectations for an increase of 200,000.

The economy created 179,000 jobs in May.

Traders now looked ahead to the government’s monthly jobs report on Thursday, which is expected to show a gain of 212,000 new jobs in June.

The data is being released one day earlier than usual due to the July 4 U.S. Independence Day holiday on Friday.

Market players also looked ahead to a speech from Federal Reserve Chair Janet Yellen at the International Monetary Fund later in the day for further indications on the future course of monetary policy.

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Her comments will be followed by a conversation with IMF Managing Director Christine Lagarde.

Elsewhere in metals trading, copper for September delivery tacked on 0.77%, or 2.5 cents, to trade at $3.229 a pound, the most since March 7, amid indications the U.S. economy is improving.

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