IV:Gold, silver futures move higher before U.S. ADP employment data
Investing.com - Gold and silver prices were higher on Wednesday, as investors looked ahead to a U.S. jobs report later in the day for further indications on the strength of the economy and the future course of monetary policy.
On the Comex division of the New York Mercantile Exchange, gold futures for April delivery traded at USD1,257.30 a troy ounce during European morning hours, up 0.5%.
Gold prices were stuck in a range between USD1,252.50 an ounce and USD1,257.90 an ounce.
Gold futures ended Tuesday’s session down 0.69% to settle at USD1,251.20 an ounce. Prices were likely to find support at USD1,238.20 a troy ounce, the low from January 31 and resistance at USD1,266.10, the high from February 3.
Meanwhile, silver for March delivery traded at USD19.61 a troy ounce, up 1%.
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 USD19.83, the high from January 28.
The U.S. is to release the ADP report on private sector job creation, which leads the government’s highly-anticipated nonfarm payrolls report by two days, while the ISM is to publish a report service sector activity.
Market players have closely been looking out for U.S. data reports recently to gauge if they will strengthen or weaken the case for the Federal Reserve to scale back 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.
