Investing.com – Gold futures pared losses on Wednesday, bouncing off the daily low as weaker-than-expected U.S. non farm employment data added to speculation that the Federal Reserve will provide additional stimulus to boost the U.S. economy.
On the Comex division of the New York Mercantile Exchange, gold futures for October delivery traded at USD1,822.45 a troy ounce during U.S. morning trade, shedding 0.28%.
It earlier fell as much as 0.94% to trade at a daily low of USD1,820.45 a troy ounce.
Payroll processing firm ADP said earlier that U.S. non-farm private employment rose by a seasonally adjusted 91,000 in August, falling short of expectations for an increase of 103,000.
The previous month’s figure was revised down to a gain of 109,000 from a previously reported 114,000.
The downbeat added to growing speculation that the Federal Reserve will introduce further easing measures to prop up the U.S. economy after minutes of the Fed’s August meeting revealed that some policy makers favored more aggressive action to stimulate the U.S. economy, including buying more government bonds.
Gold futures found further support after data from the International Monetary Fund showed that Russia’s central bank purchased 4.42 tonnes of gold in July, taking its total holdings of the precious metal to 841.13 tonnes.
Colombia’s central bank raised its official holdings of gold for the first time since 1998 last month, buying 2.3 tonnes of the yellow metal to bring its reserves to 9.14 tonnes.
Meanwhile, global financial service provider UBS reaffirmed its one-month gold price forecast of USD1,950 a troy ounce and raised its three-month forecast to USD2,100 per ounce.
In a report published Tuesday, the Swiss lender said the “recent sell-off hasn't done any lasting damage to gold, and the reasons investors bought gold in recent months remain valid.”
Elsewhere on the Comex, silver for December delivery climbed 0.57% to trade at USD41.66 a troy ounce, while copper for December delivery rose 1% to trade USD4.193 a pound.
On the Comex division of the New York Mercantile Exchange, gold futures for October delivery traded at USD1,822.45 a troy ounce during U.S. morning trade, shedding 0.28%.
It earlier fell as much as 0.94% to trade at a daily low of USD1,820.45 a troy ounce.
Payroll processing firm ADP said earlier that U.S. non-farm private employment rose by a seasonally adjusted 91,000 in August, falling short of expectations for an increase of 103,000.
The previous month’s figure was revised down to a gain of 109,000 from a previously reported 114,000.
The downbeat added to growing speculation that the Federal Reserve will introduce further easing measures to prop up the U.S. economy after minutes of the Fed’s August meeting revealed that some policy makers favored more aggressive action to stimulate the U.S. economy, including buying more government bonds.
Gold futures found further support after data from the International Monetary Fund showed that Russia’s central bank purchased 4.42 tonnes of gold in July, taking its total holdings of the precious metal to 841.13 tonnes.
Colombia’s central bank raised its official holdings of gold for the first time since 1998 last month, buying 2.3 tonnes of the yellow metal to bring its reserves to 9.14 tonnes.
Meanwhile, global financial service provider UBS reaffirmed its one-month gold price forecast of USD1,950 a troy ounce and raised its three-month forecast to USD2,100 per ounce.
In a report published Tuesday, the Swiss lender said the “recent sell-off hasn't done any lasting damage to gold, and the reasons investors bought gold in recent months remain valid.”
Elsewhere on the Comex, silver for December delivery climbed 0.57% to trade at USD41.66 a troy ounce, while copper for December delivery rose 1% to trade USD4.193 a pound.