UPDATE: Gold holds on to modest gain after upbeat ISM services data
By Myra P. Saefong, MarketWatch , Rachel Koning Beals
Gold Shares ETF edges higher
Gold prices held on to a modest gain Wednesday, recouping roughly half of their losses from a day earlier, even as a monthly climb in the U.S. ISM services index to its highest level since mid-2005 fed expectations for another Federal Reserve interest-rate increase this year.
December gold on Comex was up $2.20, or 0.2%, to settle at $1,276.80 an ounce after touching an intraday high of $1,285. Prices pared earlier gains and traded briefly lower after data Wednesday showed that ISM services index rose to 59.8% in September--its highest since the middle of 2005. Prices lost nearly 0.1% to settle at $1,274.60 Tuesday, the lowest level since Aug. 8. The exchange-traded SPDR Gold Shares ETF (GLD), meanwhile, traded up 0.2%.
December silver lost 2.6 cents, or 0.2%, at $16.624 an ounce, while the silver ETF iShares Silver Trust (SLV) traded less than 0.1% lower.
"Traders are focused on U.S. economic data releases" and the ISM numbers did turn gold lower, said Chintan Karnani, chief market analyst at Insignia Consultants. "Even the September private ADP job numbers (http://www.marketwatch.com/story/private-sector-job-growth-slows-in-september-adp-says-2017-10-04) were better than expected." Private-sector employment slowed in September as firms added 135,000 jobs ADP reported Wednesday. The gain was close to estimates of economists polled by Econoday.
A "firm U.S. economy despite the hurricanes implies that there will be interest-rates hikes by the Federal Reserve even after December," he said.
The ICE U.S. Dollar Index was down 0.1% in the wake of the latest economic data. Weakness in the dollar can provide a lift to dollar-denominated gold prices.