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Gold, silver futures fluctuate ahead of ADP report, Yellen speech

Published 07/02/2014, 05:44 AM
Gold, silver swing ahead of ADP jobs data, Yellen speech
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Investing.com - Gold and silver futures swung between small gains and losses on Wednesday, as investors looked ahead to key U.S. economic data later in the day for further indications on the strength of the economy.

On the Comex division of the New York Mercantile Exchange, gold for August delivery eased up 0.12%, or $1.60, to trade at $1,328.20 a troy ounce during European morning hours. Prices held in a tight range between $1,325.30 and $1,328.60.

Gold rose to $1,334.90 on Tuesday, the most since March 24, before trimming gains to settle at $1,326.60, up 0.35%, or $4.60.

Prices were likely to find support at $1,305.40, the low from June 25 and resistance at $1,339.10, the high from March 21.

Also on the Comex, silver for September delivery tacked on 0.15%, or 3.1 cents, to trade at $21.14 a troy ounce. Prices rallied to $21.21 on Tuesday, the highest since March 18.

The U.S. is to release the ADP report on private sector job creation in June later in the session. The report comes ahead of Thursday's monthly government jobs report that is expected to show a gain of 212,000 new jobs in June.

The data will be released one day earlier than usual due to the July 4 U.S. Independence Day holiday on Friday.

Market players also looked ahead to a speech from Federal Reserve Chair Janet Yellen at the International Monetary Fund later in the day for further indications on the future course of monetary policy.

Her comments will be followed by a conversation with IMF Managing Director Christine Lagarde.

Gold and silver prices remained supported amid expectations the Fed will keep rates on hold for an extended period of time after data last week showed that the U.S. economy shrank at an annual rate of 2.9% in the first quarter.

Elsewhere in metals trading, copper for September delivery inched up 0.09%, or 0.3 cents, to trade at $3.207 a pound. Prices rose to $3.213 a pound on Tuesday, the most since March 7.

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