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Gold futures little changed after ADP report; central banks eyed

Published 03/06/2013, 08:56 AM
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Investing.com - Gold futures were little changed in rangebound trade during U.S. morning hours on Wednesday, after data showed that the U.S. private sector added more jobs than expected in February, while expectations for fresh easing measures by world central banks continued to support the precious metal.

Gold’s gains were limited as soaring equities in the U.S. dimmed the investment appeal of the precious metal.

On the Comex division of the New York Mercantile Exchange, gold futures for April delivery traded at USD1,576.40 a troy ounce during U.S. morning trade, up 0.1% on the day.

Prices held in a tight USD7-trading range between USD1,572.20 a troy ounce, the daily low and a session high of USD1,579.50 a troy ounce.

Gold prices were likely to find near-term support at USD1,564.20 a troy ounce, the low from March 1 and resistance at USD1,602.20, the high from February 28.

ADP non-farm payrolls rose by a seasonally adjusted 198,000 in February, above expectations for an increase of 170,000.

The previous month’s figure was revised up to a gain of 215,000 from a previously reported increase of 192,000.

The precious metal continued to draw support from prospects of ongoing monetary easing by the Federal Reserve and the Bank of Japan.

Gold traders were also looking ahead to policy meetings by the European Central Bank and the Bank of England on Thursday, as well as Friday’s closely-watched data on U.S. nonfarm payrolls.

Gold’s gains were limited as market players opted for global equities over the precious metal in a risk-on trading session amid hopes the economic recovery in the U.S. is gaining momentum.

The Dow Jones Industrial Average rallied to an all-time high on Tuesday, boosted by stronger-than-expected U.S. service sector data.

Elsewhere on the Comex, silver for May delivery added 0.6% to trade at USD28.77 a troy ounce, while copper for May delivery eased up 0.1% to trade at USD3.518 a pound.

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