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Gold trades sideways, brushes off bullish U.S. jobs data

Published 03/06/2013, 01:33 PM
Updated 03/06/2013, 01:34 PM
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Investing.com - Gold prices were flat to higher on Wednesday, trading range bound as investors largely brushed off solid private-sector jobs data in the U.S. and waited on the sidelines for the European Central Bank to unveil its latest decision on interest rates and policy language on Thursday.

On the Comex division of the New York Mercantile Exchange, gold futures for April delivery were up 0.04% at USD1,575.50 a troy ounce in U.S. trading on Wednesday, up from a session low of USD1,566.80 and down from a high of USD1,584.00 a troy ounce.

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.

In the U.S., payroll processor ADP reported earlier that private-sector, non-farm payrolls rose by 198,000 in February, beating expectations for an increase of 170,000.

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%.

While the data sparked talk the Federal Reserve may be closer to winding down stimulus measures, which would strengthen the greenback and push down gold, investors shrugged off the data and spent the session largely on the sidelines.

The European Central Bank will conclude a two-day monetary policy meeting on Thursday, and talk of hints for future rate cuts to drive the economy towards recovery kept market participants in a wait-and-see mode.

The Bank of Japan will hold a similar meeting this week as well.

Data released earlier on Wednesday revealed that the eurozone economy shrank by 0.6% in the fourth quarter, in line with the preliminary estimates and economists' predictions.

Elsewhere on the Comex, silver for May delivery was up 0.57% and trading at USD28.767 a troy ounce, while copper for May delivery was down 0.63% and trading at USD3.493 a pound.






 

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