Gold prices moved higher on Wednesday, rebounding from recent losses, due largely to some short-covering and bargain hunting.
A weaker dollar and data showing a faster than expected pace of expansion by Chinese factory activity also contributed to gold’s advanced.
The dollar index slid to 92.99 before recovering to 93.18, but was still down by about 0.13% from the previous close.
Gold futures for June ended up $29.60 or about 1.8% at $1,715.60 an ounce. Gold futures shed about 10% in the January-March 2021 quarter.
Silver futures for May closed higher by $0.395 at $24.532 an ounce, while Copper futures for May settled at $3.9955 per pound, up $0.0170 from the previous close.
Investors were awaiting details of U.S. President Joe Biden’s infrastructure plan to be announced in a speech later today in Pittsburgh.
The Washington Post reports the first part of Biden’s infrastructure package could cost $2.25 trillion, with the focus on physical infrastructure, housing, clean energy and manufacturing, among other areas.
Meanwhile, ADP said private sector employment surged up by 517,000 jobs in March after climbing by an upwardly revised 176,000 jobs in February.
Economists had expected employment to jump by 550,000 jobs compared to the addition of 117,000 jobs originally reported for the previous month.
A report released by MNI Indicators on Wednesday showed a much bigger than expected acceleration in the pace of growth in Chicago-area business activity in the month of March.
MNI Indicators said its Chicago business barometer soared to 66.3 in March from 59.5 in February.
Pending home sales in the U.S. plunged by much more than expected in the month of February, according to a report released by the National Association of Realtors on Wednesday.
NAR said its pending home sales index plummeted by 10.6% to 110.3 in February after tumbling by 2.4% to a revised 123.4 in January.
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