IV:Gold edges higher ahead of U.S. jobs data, Fed easing in focus
Investing.com - Gold futures edged higher on Wednesday, as investors looked ahead to the ADP report on U.S. nonfarm payrolls later in the day to assess the strength of the U.S. economy and the need for further stimulus from the Federal Reserve.
On the Comex division of the New York Mercantile Exchange, gold futures for August delivery traded at USD1,399.25 a troy ounce during European morning hours, up 0.15% on the day.
Comex gold prices held in a range between USD1,397.05 a troy ounce, the daily low and a session high of USD1,407.75 a troy ounce.
Gold futures were likely to find support at USD1,355.55 a troy ounce, the low from May 23 and near-term resistance at USD1,421.25, the high from May 31.
Markets were focusing on the U.S. private sector jobs report by payroll processor ADP later Wednesday for clues on Friday’s key nonfarm payrolls data.
Data on Monday showing that activity in the U.S. manufacturing sector contracted for the first time in six months in May dampened expectations that the Federal Reserve will scale back its asset purchase program later this year.
Moves in the gold price this year have largely tracked shifting expectations as to whether the Federal Reserve would end its bond-buying program sooner-than-expected.
Gold prices lost 1% on Tuesday after India’s central bank decided to extend gold import restrictions in a bid to reduce the country’s current account deficit.
India is the world’s largest gold consumer.
Elsewhere on the Comex, silver for July delivery added 0.4% to trade at USD22.50 a troy ounce, while copper for July delivery eased up 0.3% to trade at USD3.380 a pound.
