Gold prices declined today even after a ADP employment report missed forecasts and the greenback continued to consolidate.
Gold for June delivery on the Comex division of the New York Mercantile Exchange was down $2.90 to close at $1,190.30 per ounce. Trade ranged from $1,187.40 to $1,196.90.
Light sweet crude (WTI) oil on the Nymex was up $0.34 or 0.5 percent to $60.74, the highest price since of the year.
“Gold was firmer during the overnight and morning sessions as investors focus some concern over US inflation re-appearing on the back of higher energy costs,” Sucden Financial said. “However, $1,200 per ounce has yet to be re-visited and resistance remains at $1,220-30 area.
In data, US private employers added 169,000 jobs last month, the fewest since January 2014 and well below the the 199,000 forecast, according to the ADP National Employment Report released this morning.
Preliminary unit labor costs quarter-over-quarter for March was five percent, above the 4.5 percent expectation. Preliminary nonfarm productivity quarter-over-quarter in March was down 1.9 percent, with forecasters pegging a decline of 1.8 percent.
The dollar was last 1.6 percent softer at 1.1364 against the euro.
Earlier today, China’s HSBC services PMI disappointed at 52.9 from the expected 53.1, which signalled further slowdown in this key metals-consuming country, increasing the likelihood that Beijing will introduce further stimulus measures.
As for the other precious metals, Comex silver for July delivery was last down 9.9 cents at $16.480 per ounce. Trade has ranged from $16.385 to $16.650. Platinum for July delivery on the Nymex was down $5.30 at $1,143.50 per ounce, while the most-actively traded palladium contract was at $792.10, down $2.85.
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