Gold held a rebound from an eight-week low as more disappointing U.S. data bolstered the case for additional interest cuts from the Federal Reserve and investors added to holdings in exchange-traded funds.
Bullion rallied Wednesday after figures from the ADP Research Institute showed private payrolls fell short of estimates in September and the prior month’s gain was revised lower, suggesting that a manufacturing recession, a fragile global economic outlook and the trade war are impacting hiring. The ADP data came a day after a manufacturing gauge slumped to the lowest in a decade. Asian stocks declined and Treasuries ticked higher.
Attention now turns to the next batch of U.S. data, including services PMI on Thursday and non-farm payrolls data on Friday.
Spot gold as much as +0.3% to $1,503.66/oz, and traded little changed at $1,499.61 at 7:48am in London.
Source : Bloomberg