Forexpros –
Forexpros – Gold futures moved lower during U.S. trade Wednesday, as a strong U.S. dollar depressed prices in the precious metal, in the wake of feeble worldwide employment numbers.
On the Comex division of the New York Mercantile Exchange, gold futures for June delivery traded at USD1655.45 a troy ounce, giving back 0.41%.
Gold futures were likely to find support at USD1633.91 a troy ounce, the low of April 24 and resistance at USD1,663.24, the session high.
Payroll processing firm ADP said the U.S. private sector added 119,000 jobs in April, far short of expectations for a gain of 177,000, after an increase of 209,000 in March. It was the smallest increase in ADP nonfarm payrolls since September 2011.
The data added to fears that the economic recovery in the U.S. is losing momentum, ahead of a government report on nonfarm payrolls on Friday.
Following the release of the data, the dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, climbed 0.39% to hit 79.23, pressuring dollar denominated commodities.
In other news Wednesday, fears over the economic outlook for the euro zone resurfaced after data showed that manufacturing activity in the region slumped to a 34 month low last month, while the unemployment rate in the bloc rose to a record high in March.
Meanwhile, physical demand remained subdued, as buyers in India were put off by a weaker rupee and high prices.
Elsewhere on the Comex, silver for July delivery dropped 0.87% to trade at USD30.67 a troy ounce, while copper for July delivery was fell 1.48% to trade at USD3.787 a pound.
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