WASHINGTON (dpa-AFX) - Following the pullback seen in the previous session, the price of gold showed a strong move back to the upside during trading on Wednesday.
Gold for June delivery jumped $28.60 or 1.2 percent to $2,354.10 an ounce after slumping $21.10 or 0.9 percent to $2,235.50 an ounce during Tuesday's session.
The rebound by gold came amid a continued decrease by Treasury yields, with the yield on the benchmark ten-year note falling to its lowest levels in two months.
Yields extended the recent downward trend as a report from payroll processor ADP showing private sector job growth in the U.S. slowed by more than expected in the month of May added to optimism about the outlook for interest rates.
ADP said private sector employment climbed by 152,000 jobs in May after jumping by a downwardly revised 188,000 jobs in April.
Economists had expected private sector employment to increase by 173,000 jobs compared to the addition of 192,000 jobs originally reported for the previous month.
Gold moved higher even though the value of the U.S. dollar has also risen following the release of a separate report showing a stronger than expected rebound by service sector activity in the month of May.
The Institute for Supply Management said its services PMI jumped to 53.8 in May from 49.4 in April, with a reading above 50 indicating growth in the sector. Economists had expected the index to inch up to 50.8.
With the much bigger than expected increase, the services PMI reached its highest level since hitting 54.1 in August 2023.
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