Prices of gold slightly edged lower early on Wednesday as investors awaited U.S economic reports. That includes results of private-sector employment due on Friday from the U.S. Labor Department.
The labor market data can provide guidance on the pace and timeline of the Federal Reserve’s tapering of purchases. That is of the $80 billion in Treasuries and $40 billion in mortgage-backed securities. These have helped to support financial markets in the U.S. during the coronavirus pandemic.
December gold GCZ21, 0.17% was down $3.40, or 0.2% at $1,814.70 an ounce after previously gaining 0.3% on Tuesday.
At 8:15 a.m. EST the August employment report from Automatic Data Processing will be published, followed by IHS Markit results on manufacturing activity for August due at 9:45 a.m. Moreover, the Institute for Supply Management’s comparable manufacturing index will be out at 10 a.m. and at the same time, a report on construction spending for July is also due.
Silver for December delivery SIZ21, 0.62% was trading 5 cents, or 0.2% lower at $23.97 an ounce at the start of September. It previously reported a monthly fall of 6%.
Oil Strengthens Ahead of OPEC+ Policy Meeting
On Wednesday, prices of oil rose ahead of an OPEC+ meeting. The producer club is expected to add 400,000 barrels per day (bpd) each month to the end of December.
At 1500 GMT, the Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia ( OPEC+) are set to meet. Sources said, the group has raised its forecast for oil demand in 2022. The move might help build a case for raising output.
By 1225 GMT, Brent crude for November delivery gained 21 cents, or 0.3%, to $71.84 a barrel. U.S. West Texas Intermediate (WTI) crude for October gained 22 cents, or 0.3%, at $68.72.
U.S. President Joe Biden’s administration has called for OPEC+ to boost output. That is to tackle rising gasoline prices that it views as a threat to the global economic recovery.
Stephen Brennock of oil broker PVM said that one foregone conclusion is that they will not add additional barrels as per Washington’s recent request. Nor will they press the pause button on easing supply curbs, he added.
He also said that there is no reason to think the OPEC+ will rock the boat when it comes to its production strategy.