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Gold Inches Up Amid Caution From Investors, Low-Volume Trading

Published 02/05/2014, 04:41 AM
Updated 07/09/2023, 06:31 AM
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Precious-Gold inched up on Wednesday amid caution from investors ahead of the infamous non-farm payrolls report.

Fears of a growth slowdown soared after a report released this week showing that the manufacturing sector expanded at the weakest pace in eight months in January.

A report due at 13:15 GMT may show that private-sector employers added 190,000 workers in January after adding 238,000 in December.

The figures will be watched carefully as they mainly give an indication about the jobs report due on Friday.

Another important figure from the world’s biggest economy may show that the services sector widened expansion in January.

Investors are carefully watching economic data from the United States to predict the pace at which the Fed would scale back its monthly bond purchases.

It is worthwhile to mention that policymakers at the Fed decided to slash stimulus by $20 billion to $65 billion after signs of economic progress.

On the other hand, the closure of Chinese markets due to the Lunar New Year holiday is weighing on volume, making the trading range very small.

Meanwhile, the yellow metal is trading around $1256.19 an ounce after hitting a high of $1257.60 and a low of $1252.44. Resistance remains near $1280 levels while support is found at $1240.

The U.S. dollar remained near the session’s opening at 81.29, according to the six-currency gauge the dollar index.

Crude oil for March’s delivery inched up to trade around $97.69 a barrel after opening at $97.63.

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