Precious-Gold slipped on Wednesday trading as the dollar's rebound sapped demand on the shiny metal. The yellow metal inched down on Tuesday after a U.S. report had showed that ISM manufacturing soared to 54.8 in April, the most since June, compared to 53.4 in March.
Today, a report will show that U.S. companies added 170,000 employees last month after adding 209,000 in March, according to median forecasts. The improvement in U.S. manufacturing data helped the dollar to rebound from 10-week low against the yen on lower expectations the Fed will add to stimulus, especially after the top two Fed officials referred that there is no need to add to non-standard measures.
The U.S. dollar halted its downside direction yesterday to continue rebounding today, hovering around 78.95 compared with the day's opening of 78.81, as depicted by the dollar index which tracks the dollar movements versus a basket of major currencies. In fact, gold prices are affected by the U.S. data and officials' announcements on the one hand and the latest developments in the European debt crisis on the other.
In Europe, still there are worries that Spain may eventually ask for an international bailout after the myriad financial and economic woes encountering the economy. Tomorrow, the Spanish government is set to sell 2015 and 2017 bills, while the ECB will announce its rate decision. On May 6, France and Greece will hold elections.
The shiny metal is currently trading around $1,656.62 an ounce from the day's opening of $1,662.42, where it fell yesterday after facing strong resistance at $1,670 which represents SMA 100 level. Crude oil for June's delivery is meanwhile trading near the day's opening around $105.98 a barrel.
