Investing.com - Gold prices firmed above the $1,200-level on Wednesday, after data showed that U.S. non-farm private employment rose less-than-expected in November.
On the Comex division of the New York Mercantile Exchange, gold futures for February delivery tacked on $4.90, or 0.41%, to trade at $1,204.30 a troy ounce during U.S. morning hours.
A day earlier, Comex gold prices lost $18.70, or 1.54%, to settle at $1,199.40 an ounce. Prices hit $1,141.70 on December 1 after Swiss voters rejected a proposal requiring the Swiss central bank to boost its gold reserves.
Futures were likely to find support at $1,141.70, the low from December 1, and resistance at $1,221.00, the high from December 1.
Also on the Comex, silver futures for March delivery inched up 1.2 cents, or 0.07%, to trade at $16.46 a troy ounce. Prices hit $14.42 on December 1, a level not seen since August 2009.
Payroll processing firm ADP said non-farm private employment rose by a seasonally adjusted 208,000 last month, below expectations for an increase of 223,000.
The economy created 233,000 jobs in October, whose figure was upwardly revised from a previously reported 230,000.
While not viewed as a reliable guide for the government jobs report due on Friday, December 5, it does give guidance on private-sector hiring.
The U.S. dollar index, which measures the greenback against a basket of six major currencies, was at 88.90, the strongest level since March 2009.
A stronger U.S. dollar usually weighs on gold, as it dampens the metal's appeal as an alternative asset and makes dollar-priced commodities more expensive for holders of other currencies.
The euro remained under pressure as investors awaited Thursday’s outcome of the European Central Bank’s monthly policy meeting, amid heightened expectations for additional measures to spur growth and inflation in the faltering euro area economy.
Gold prices are likely to remain vulnerable in the near-term amid indications a strengthening U.S. economic recovery will force the Federal Reserve to start raising interest rates sooner and faster than previously thought.
Expectations of higher borrowing rates going forward is considered bearish for gold, as the precious metal struggles to compete with yield-bearing assets when rates are on the rise.
Elsewhere in metals trading, copper for March delivery slumped 1.8 cents, or 0.62%, to trade at $2.874 a pound, amid ongoing concerns over the health of China's economy.
A pair of reports on Chinese November factory activity released earlier in the week provided more evidence of a slowdown in the world's second largest economy.
The Asian nation is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.