Gold turns decrease after ADP knowledge provides to fee hike expectations

Gold turns lower after ADP data

Investing.com – Gold prices turned lower on Wednesday, after better than expected U.S. employment data reinforced expectations for a Federal Reserve rate hike later this month.

non-farm private employment rose by , above expectations for an increase of 190,000. The economy created 196,000 jobs in October, whose figure was upwardly revised from a previously reported increase of 182,000.

Market players are now awaiting a on the U.S. economic outlook at 12:25PM ET. The Fed chief to signal that a December rate hike is likely while reiterating that the pace of increases will be gradual.

Also looming large is Friday’s , the last jobs report before the Fed decides on interest rates at its December 15-16 meeting. A strong payrolls report was likely to cement expectations for a Fed rate hike later this month.

The outcome of Thursday’s will also be in focus amid speculation the central bank could ramp up its monetary stimulus program.

for February delivery on the Comex division of the New York Mercantile Exchange shed $ 3.30, or 0.31%, to trade at $ 1,060.20 a troy ounce during U.S. morning hours.

Gold fell to a six-year low of $ 1,051.60 last week, amid mounting expectations the Fed will raise rates for the first time in nearly a decade at its mid-December meeting. Expectations of higher borrowing rates going forward is considered bearish for gold, as the precious metal struggles to compete with yield-bearing assets when rates are on the rise.

The , which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.3% to 100.18, re-approaching an eight-month peak of 100.35 hit earlier in the week.

Meanwhile, for December delivery inched down 3.8 cents, or 0.27%, to trade at $ 14.04 a troy ounce. Prices hit $ 13.85 last week, the weakest since August 2009.

Elsewhere in metals trading, declined , as market players were disappointed by the size of supply cuts announced by Chinese metal producers, which was seen as too small to make a significant impact on an extremely oversupplied market.

Ten major copper smelters in China said they will scale back production by 350,000 metric tons next year. The group also called on the government to buy metal for its strategic stockpile.

A pair of disappointing released Tuesday underlined concerns over the . The downbeat data reinforced the view that the economy remains in the midst of a gradual slowdown which will require Beijing to roll out more support in coming months.

Copper is down almost 30% since May as expectations of higher interest rates in the U.S. and slower global economic growth, especially in China, weighed.

The Asian nation is the world’s largest copper consumer, accounting for nearly 45% of world consumption.

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Gold turns decrease after ADP knowledge provides to fee hike expectations