Gold prices edged higher on Wednesday, but held near a seven-week low as investors looked ahead to key U.S. data later in the day for further indications on the future course of monetary policy.
Gold inches higher but holds near 7-week low ahead of U.S. ADP jobs report
On the Comex division of the New York Mercantile Exchange, goldfor June delivery held in a tight range between $1,278.80 a troy ounce and $1,284.90 an ounce.
Gold last traded at $1,284.70 an ounce during European morning hours, up 0.37%, or $4.70. Prices fell to $1,277.40 an ounce on Tuesday, the lowest since February 11, before trimming losses to settle at $1,280.00, down 0.3%, or $3.80.
Gold futures were likely to find support at $1,273.70 a troy ounce, the low from February 11 and resistance at $1,299.30, the high from March 31.
The U.S. is to release the ADP report on private sector job creation in March later in the session. The report comes ahead of Friday's monthly government jobs report that is expected to show a gain of 197,000 new jobs in March.
The U.S. is also to release data on factory orders later Wednesday.
Comex gold prices have been under heavy selling pressure in recent weeks as upbeat U.S. economic data underlined expectations that the Federal Reserve will begin to raise rates sooner than previously thought.
On Monday, Federal Reserve Chair Janet Yellen said that there is still room for the central bank to help the economy and reiterated that the Fed’s commitment to economic stimulus will still be needed for some time.
Meanwhile, silver for May delivery jumped 0.91%, or 18.0 cents, to trade at $19.87 a troy ounce. Silver ended Tuesday’s session down 0.32%, or 6.4 cents, to settle at $19.68 an ounce.
Elsewhere on the Comex, copper for May delivery eased up 0.43%, or 1.3 cents, to trade at a three-week high of $3.053 a pound following an earthquake in Chile.
Chile is the world’s biggest producer of the red metal, providing almost a third of the world's supply.
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