Gold for June delivery rose as much as to $1,120/oz on Comex, helped by a drop in the dollar on worse-than expected US ADP employment data. ADP employment report stoked concern about the labor market in the US two-days before the closely watched government payrolls data. June-deliverable gold futures rose for a fourth day in the last five trading days. Gold closed 0.8 percent higher at $1,114.50/oz. The dollar fell 0.5 percent against a basket of six major currencies after ADP employment reports showed that US private sector employers cut 23,000 jobs in March. Equities were marginally changed as the benchmark MSCI index closed 0.05 percent down. Crude oil prices also rose 1.69 percent to $83.76/barrel and boosted gold prices. SPDR Gold Trust maintained its holdings at 1129.82 MT. Indian rupee weakened further and closed with 0.35 percent appreciation. Appreciating rupee limited gains on MCX gold futures which settled the day with 0.35 percent gains at Rs. 16,436/10 gm. Outlook Gold steadies at $1,114/oz in Asian hours after hitting two week high yesterday. The dollar index is little changed but may weaken further ahead of falling construction spending in the US. We expect today’s jobless claims may not match Bloomberg’s surveyed figures. Bloomberg expects that jobless claims are likely to fall which is positive for both US labor market and its home currency, the dollar. If we recall yesterday’s ADP employment report which showed unexpected job cuts in private sector, today’s jobless claims may rather increase which is not seen positive for the dollar. Weaker dollar may drive gold prices higher for the day. However, actual data will dictate further trend in the yellow metal. Asian equity markets are trading higher after reports showed that manufacturing activities in China expanded.

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