Gold started the day falling due to some factors as stronger dollar ahead of U.S. Fed rate decision today.
The dollar recovered from more than 7-week lows as traders are waiting for the Federal Reserve’s decision whether to raise interest rates or will keep rates steady upon uncertainty of Trump’s policies.
Spot gold declined by 0625 GMT, 0.2 percent to $1,208.67 an ounce. Gold futures slipped 0.1 percent to $1,207.80.
Silver futures for March delivery slipped 0.4 percent to $17.46 an ounce after hitting two-month high of 17.63 the previous day.
There has been a continuous rallying in the markets since the Trump-win in November which weighed heavily on gold prices, but Spot gold gained more than 5 percent in January, its best month since June 2016 as investors went for the safe haven path upon concerns of what the U.S. President Donald Trump would achieve.
Wednesday, private payrolls processor ADP said that 246,000 jobs were created in January up from December’s report 151,000. The numbers came much stronger than expected with consensus forecasts saw an increase of 165,000 jobs.
What is ADP EMPLOYMENT?
The report is a measure of non-farm private sector employment which is obtained by utilizing anonymous subset of roughly 400,000 U.S. businesses which are clients of ADP.
This data is a very good measure of employment strength of the economy and a good precursor of Non-farm payroll data.
April Comex gold futures were relatively flat on the day ahead of the report and fell after it.
April gold last traded at $1,207.75 an ounce, down 0.30 percent on the day.
Prices of the precious metal rose to a one-week high of $1,217.40 on Tuesday.
According to ADP, small businesses created 62,000 jobs, midsized businesses created 102,000 jobs and large corporations created 83,000 jobs.
Jobs created by sector and industry
46,000 jobs in Goods-Producing Sector, 201,000 in Service Providing sector, 63,000 in Trade, Transportation and Utilities, 6,000 in Natural Resources and Mining, 25,000 in Construction, 15,000 in Manufacturing, 71,000 in Professional and Business sector, Leisure and Hospitality added 17,000 jobs, Education and Health created 47,000 jobs while 9,000 jobs were created in other services.
No jobs were added in Financial Activities while Information Technology sector lost 6,000 jobs.
U.S. stock-market futures, are already aiming higher, gaining following the private sector report.
Dow Jones Industrial Average futures are up 0.4 percent at 19,862.
S&P 500 futures gained 0.3 percent at 2,281 and Nasdaq-100 futures rose 0.7 percent at 5,165.