Investing.com – Gold futures erased losses on Wednesday, rebounding from a three-day low after a string of weaker-than-expected U.S. data fuelled speculation that U.S. interest rates would stay lower, boosting the appeal of the precious metal.
On the Comex division of the New York Mercantile Exchange, gold futures for August delivery traded at USD1,538.15 a troy ounce during U.S. morning trade, edging 0.11% higher.
It earlier rose to a daily high of USD1,539.85 a troy ounce.
Payroll processing firm ADP said U.S. non-farm payrolls rose just 38K in May, on a seasonally adjusted basis, after increasing by a downwardly revised 177K the previous month. Analysts had expected non-farm payrolls to rise by 178K last month.
Separately, the U.S. Institute of Supply Management said that its index of purchasing managers fell to a one-year low of 53.5 in May, compared to April’s reading of 60.4. The reading disappointed expectations for 57.7.
Meanwhile, fears over a Greek default continued after German media outlets reported it is now certain that the International Monetary Fund will not pay its share of a fifth tranche of aid to Greece at the end of June.
European Union Economic Affairs Commissioner Olli Rehn reiterated that a default was not in the cards for Greece and said Athens would need to carry on with its plans to sharply reduce its budget deficit and privatize government-owned businesses.
Weakness in the U.S. dollar also contributed to gold’s strength. The dollar index was down 0.33% trading at 74.43, after earlier dropping to a four-week low of 74.40.
Elsewhere, silver for July delivery slumped 1.9% to trade at USD37.78 a troy ounce.
The U.S. Mint sold 3.65 million ounces of American Eagle silver coins in May, up 30% from April, the company said on its website earlier Wednesday. Total silver coin sales through the first five month of 2011 stood at 18.9 million ounces, compared to 15.2 million ounces in the same period a year earlier.
On the Comex division of the New York Mercantile Exchange, gold futures for August delivery traded at USD1,538.15 a troy ounce during U.S. morning trade, edging 0.11% higher.
It earlier rose to a daily high of USD1,539.85 a troy ounce.
Payroll processing firm ADP said U.S. non-farm payrolls rose just 38K in May, on a seasonally adjusted basis, after increasing by a downwardly revised 177K the previous month. Analysts had expected non-farm payrolls to rise by 178K last month.
Separately, the U.S. Institute of Supply Management said that its index of purchasing managers fell to a one-year low of 53.5 in May, compared to April’s reading of 60.4. The reading disappointed expectations for 57.7.
Meanwhile, fears over a Greek default continued after German media outlets reported it is now certain that the International Monetary Fund will not pay its share of a fifth tranche of aid to Greece at the end of June.
European Union Economic Affairs Commissioner Olli Rehn reiterated that a default was not in the cards for Greece and said Athens would need to carry on with its plans to sharply reduce its budget deficit and privatize government-owned businesses.
Weakness in the U.S. dollar also contributed to gold’s strength. The dollar index was down 0.33% trading at 74.43, after earlier dropping to a four-week low of 74.40.
Elsewhere, silver for July delivery slumped 1.9% to trade at USD37.78 a troy ounce.
The U.S. Mint sold 3.65 million ounces of American Eagle silver coins in May, up 30% from April, the company said on its website earlier Wednesday. Total silver coin sales through the first five month of 2011 stood at 18.9 million ounces, compared to 15.2 million ounces in the same period a year earlier.