Gold prices edged lower on Wednesday, as the dollar edged up after data showed a bigger than expected increase in U.S. private sector employment in September.
Slightly easing worries about Italy’s budget woes also contributed to the yellow metal’s retreat from near two-week highs.
According to reports, the Italian government said it would cut its debt and not go on an excessive spending it had previously indicated. It is said the Italian government would bow to EU pressure to reduce its budget deficit to 2% of GDP by 2021.
The dollar index rose to 95.30, gaining about 0.2%.
Gold futures for December ended down $4.10, or 0.3%, at $1,202.90 an ounce.
On Tuesday, gold futures ended up $15.30, or 1.3%, at $1,207.00 an ounce, the highest settlement in nearly two weeks.
Silver futures for December ended lower by $0.023, at $14.670 an ounce.
Copper futures for December ended up $0.0275, at $2.8340 per pound.
A report from payroll processor ADP showed a much bigger than expected increase in U.S. private sector employment in the month of September. The report showed private sector employment jumped by 230,000 jobs in September after climbing by an upwardly revised 168,000 jobs in August. Economists had expected employment to increase by about 185,000 jobs compared to the addition of 163,000 jobs originally reported for the previous month.
According to a report released by the Institute for Supply Management, growth in U.S. service sector activity unexpectedly accelerated in the month of September, with the ISM non-manufacturing index climbing to 61.6 in the month, from 58.5 in August. Economists had expected the index to dip to 58.0.