Gold jumps up as soft U.S. jobs report weakens dollar
Gold and the dollar tend to trade inversely with one another.
On the Comex division of the New York Mercantile Exchange, gold futures for December delivery traded at USD1,316.70 during U.S. afternoon hours, up 2.38%.
Gold prices hit a session low of USD1,278.20 a troy ounce and high of USD1,323.80 a troy ounce.
Gold futures were likely to find support at USD1,272.10 a troy ounce, the low from Aug. 7, and resistance at USD1,375.10, the high from Sept. 19.
The December contract settled down 3.08% at USD1,286.10 a troy ounce on Tuesday.
Payroll processing firm ADP said earlier that U.S. non-farm private employment rose by a seasonally adjusted 166,000 in September, missing expectations for an increase of 180,000.
July's figure was revised down to a gain of 159,000 from 176,000.
The numbers bolstered gold by keeping expectations alive that the Federal Reserve will continue stimulating the economy with its monthly USD85 billion in asset purchases, which weaken the dollar by driving down interest rates to spur recovery.
Elsewhere, a U.S. government shutdown ran into its second day on Wednesday due to an inability among lawmakers to approve a spending package.
Concerns the shutdown will mean the official September jobs report won't publish Friday pushed the ADP report into the limelight, moving gold higher and the dollar lower as a consequence.
Elsewhere on the Comex, silver for December delivery was up 2.88% at USD21.785 a troy ounce, while copper for December delivery was up 1.34% and trading at USD3.318 a pound.
Courtesy: Investing.com
