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Gold Prices Rise to Session Highs After ADP Employment Report

Published 03/06/2019, 08:30 AM
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Investing.com - Gold prices were higher on Wednesday, hitting an intra-day high after data showed that U.S. non-farm private employment rose less than expected.

U.S. private employers added 183,000 jobs in February, below economists' expectations, a report by payrolls processor ADP (NASDAQ:ADP) showed.

Economists had expected a gain of 189,000 jobs. The shortfall was more than offset by a sharp upward revision in the number of private-sector created in January, to 300,000 from a previously reported increase of 213,000.

Comex gold futures were up $3.05, or 0.25%, at $1,287.65 a troy ounce by 8:30AM ET (13:30 GMT), after falling as low as $1,282.00 on Tuesday. That was its lowest level in six weeks, a reflection of growing risk appetite in world markets amid prospects of an end to the trade war between China and the U.S.

Meanwhile, spot gold was flat at $1,286.84 per ounce.

The yellow metal also drew support from the latest data point highlighting the extent of the global economic slowdown, after the Organization for Economic Co-Operation & Development (OECD) cut its forecasts again for the world economy for this year and next.

The Paris-based organization now sees world GDP growing 3.3% in 2019 and 3.4% in 2020. That represents cuts of 0.2% for 2019 and 0.1% for 2020, compared to its last set of forecasts in November.

“Gold in longer term is very much supported, partially due to shift in sentiments and global slowdown. In the shorter term, gold continues to show signs of bearish weakness and there is some room to go further south before it resumes its positive trend,” said Benjamin Lu, an analyst with Singapore-based Phillip Futures.

In other metals trading, silver futures were little changed at $15.11 a troy ounce.

Meanwhile, palladium futures held steady at $1,465.40 an ounce, while platinum fell 1% to $829.85 an ounce.

-- Reuters contributed to this report

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