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Gold higher ahead of central bank meetings

Published 03/06/2013, 08:25 PM
Updated 03/06/2013, 08:26 PM
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Investing.com - Gold futures shot higher in the early part of Asia’s Thursday session following another strong day for U.S. stocks and ahead of several marquee central bank meetings later today.

On the Comex division of the New York Mercantile Exchange, gold futures for April delivery advanced 0.45% to USD1,582 per troy ounce after settling up 0.04% at USD1,575.50 a troy ounce in U.S. trading on Wednesday.

Gold futures were likely to test support USD1,564.20 a troy ounce, Friday's low, and resistance at USD1,585.60, Tuesday's high.

Gold’s slight increase came amid another up day for U.S. equities, which included the Dow Jones Industrial Average rising to another record high, and some decent data points.

In U.S. economic news, the ADP private payroll survey showed non-government U.S. employers added 198,000 new jobs last month, topping estimates for a gain of 173,000 private sector jobs. The Labor Department delivers the February jobs report on Friday before the open of U.S. markets.

January’s figure was revised up to a gain of 215,000 from a previously reported increase of 192,000. Elsewhere, the U.S. Census Bureau reported that factory orders fell by 2% in January, less than market calls for a drop of 2.2%.

Today, traders will be focusing on monetary policy commentary from the Bank of Japan, the Bank of England and the European Central Bank. It is widely expected that all three central banks will keep with their loose monetary policies though speculation has increased BoE could restart quantitative easing, which it halted in November.

Media reports also noted South Korea's central bank bought 20 tons of gold last month, marking its fifth purchase of the yellow metal in the past two years.

Elsewhere, Comex silver for May delivery rose 0.31% to USD28.892 per ounce while copper for May delivery fell 0.23% to USD3.497 per ounce.


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