Gold prices edged higher Wednesday but were still near five-week lows, as investors awaited important U.S. data later in the day for further cues
on the strength of the economy and the likelihood of a near-term
interest rate increase.
Gold for December delivery on the Comex edged up 0.28%, to trade at $1,117.20 a troy ounce during European morning hours.
The yellow metal was also supported Wednesday by upbeat data from China and negative reports from the U.S.
In China, the
Caixin/Markit purchasing managers' index (PMI) rose to 52.0 in October
from September's 14-month low of 50.5, hitting the highest level since
July 2015.
In the U.S., the Census Bureau said Tuesday that factory orders dropped 1.0% in September, worse than forecasts for a fall of 0.9%. Factory orders decreased 2.1% in August, whose figure was revised from a previously reported decline of 1.7%.
December Comex silver climbed 0.01% to trade at $15.210 an ounce, while December Comex copper added 0.61% to hit $2.345 a pound.
On Tuesday, gold prices fell to $1,113.60, the lowest since October 2, as investors continued to sell the precious metal amid expectations the Federal Reserve will increase interest rates at its next meeting in December.
Gold had rallied in October as concerns over a global economic slowdown led by China and its impact on U.S. growth prospects had prompted market participants to push back expectations for a rate increase to March 2016.
Market players now await the U.S. to release the ADP jobs report for October at 8:15 am Eastern Time Wednesday, followed by data on the trade balance at 8:30 am.
At 10:00 am, the U.S. Institute of Supply Management is to issue a report on service sector growth for October.
Market players are also focusing on Friday's U.S. nonfarm payrolls report. The data is expected to show jobs growth of 182,000 in October, after an increase of 142,000 in September, while the unemployment rate is expected to hold steady at 5.1%.
A robust nonfarm payrolls report is likely to boost speculation over the timing of the Fed rate increase.
