Gold Futures Settle Higher For 3rd Straight Session, As Dollar Extends Decline

Gold futures settled higher on Wednesday, gaining for a third straight session, as the dollar drifted lower after data showing a slowdown in U.S. private sector employment growth and a downward revision to second-quarter GDP added to optimism about the outlook for interest rates.

The dollar index dropped to 102.94 this morning, and despite recovering to 103.19, remains weak, losing about 0.33%.

Gold futures for December settled higher by $7.90 or about 0.4% at $1,973.00 an ounce.

Silver futures for December ended down $0.035 at $25.104 an ounce, while Copper futures for December settled at $3.8440 per pound, gaining $0.0050.

A report from payroll processor ADP showed private sector employment in the U.S. climbed by 177,000 jobs in August after surging by an upwardly revised 371,000 jobs in July.

Economists had expected private sector employment to advance by 195,000 jobs compared to the jump of 324,000 jobs originally reported for the previous month.

The slightly smaller than expected increase in private sector employment added to recent optimism about the outlook for interest rates.

Separately, revised data released by the Commerce Department showed the U.S. economy grew by less than previously estimated in the second quarter.

The report said the increase in gross domestic product in the second quarter was downwardly revised to 2.1% from the previously reported 2.4%. Economists had expected the pace of GDP growth to be unrevised.

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