(RTTNews) - The price of gold was moving lower Wednesday morning as the US dollar was trading firm ahead of private sector employment report.
Gold for June delivery, the most actively traded contract, shed $8.70 to $1,653.70 an ounce. Yesterday, gold ended marginally lower as the dollar strengthened on some encouraging manufacturing data from the U.S., while investors weighed the prospect of a stimulus to the economy with concerns over the euro zone debt situation continuing to be a worry.
Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, moved down to 1,274.09 tons from 1,278.31 tons.
Meanwhile, the U.S. dollar moved up to near a two-week high versus the euro and the Swiss franc, while leveling off from a 7-month low against sterling. The buck continued to bounce back from its 2-month low versus the yen,
In economic mews, unemployment rate in euro area increased to new record high in March, the latest figures from Eurostat revealed. The seasonally adjusted jobless rate rose to 10.9 percent in March from 10.8 percent in February. The outcome was in line expectations. In March 2011, the rate was 9.9 percent. In March, the number of unemployed in euro area increased by 169,000 from a month earlier to 17.365 million.
Unemployment in Germany rose unexpectedly in April suggesting that the economy may have lost momentum after the euro area debt crisis intensified with Spain assuming the center stage amid renewed tensions in the region. The Federal Labor Agency said that the number of unemployed persons in the country rose by 19,000 from a month earlier to 2.875 million in April, after adjusting for seasonal variations. This was in contrast to economists' expectations for a decrease of 10,000. The number persons without work in March was 13,000 less than a month earlier.
Elsewhere, the prices of silver and platinum were ticking lower in morning deals.
From the U.S., the ADP National Employment report, which sheds light on non-farm private employment, is scheduled to be released at 8:15 a.m. ET. The consensus expectations are for an addition of 183,000 jobs by the sector in April following an addition of 209,000 jobs in March.
Later during the session, the Commerce Department will release its report on factory goods orders for March. Economists estimate a 1.6 percent drop in orders for factory goods following a 1.3 percent increase in the previous month. Meanwhile, durable goods orders, which make up the bulk of factory orders, fell 4.2 percent month-over-month in March, with transportation orders serving as a drag.
