WASHINGTON (dpa-AFX) - Following the pullback seen in the previous session, the price of gold moved back to the upside during trading on Wednesday.
Gold for June delivery climbed $23.30 or 0.7 percent to $3,373.50 an ounce, more than offsetting the $20.40 or 0.6 percent decline on Tuesday to reach its highest closing level in almost a month.
The rebound by the price of the precious metal came amid a decrease in the value of the U.S. dollar, with the U.S. dollar index falling by 0.5 percent.
Gold also benefitted from its appeal as a safe haven following the release of some weaker than expected U.S. economic data.
Payroll processor ADP released a report showing much weaker than expected private sector job growth in the month of May.
ADP said private sector employment rose by 37,000 jobs in May after climbing by a downwardly revised 60,000 jobs in April.
Economists had expected private sector employment to jump by 115,000 jobs compared to the addition of 62,000 jobs originally reported for the previous month.
In a post on Truth Social immediately after the report was released, President Donald Trump once again urged Federal Reserve Chair Jerome Powell to lower interest rates.
'ADP NUMBER OUT!!! 'Too Late' Powell must now LOWER THE RATE,' Trump said. 'He is unbelievable!!!'
A separate report released by the Institute for Supply Management showed service sector activity in the U.S. unexpectedly saw a slight contraction in the month of May.
The ISM said its services PMI fell to 49.9 in May from 51.6 in April, with a reading below 50 indicating contraction. Economists had expected the index to inch up to 52.0.
With the unexpected decrease, the services PMI dropped to its lowest level since hitting 49.2 in June 2024, which marked the last time the index was in contraction territory.
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