Daily Gold Update

Source: Bill Musgrave, American Gold Exchange

Austin— After spending most of the session in gains because of a weak report on private payrolls from ADP, gold slipped 0.1% to close under $1,286 after strong services data from the ISM helped to boost risk appetite, curtailing demand for safe havens.

Private employers added just 154,000 new jobs in September, according to ADP, the fewest since April. Following last month's disappointing jobs data, the weak tally heightens anticipation over Friday's release of the more-authoritative nonfarm payrolls report, considered a weathervane for a potential December rate hike from the Fed.

The dollar initially weakened on the ADP release, helping to push gold as high as $1,279 early in the session. But both gold and the buck reversed directions after the ISM reported that the services sector, which accounts for roughly two-thirds of U.S. economic activity, rebounded to an 11-month high last month.

Wall Street bounced higher on the upbeat economic news, with the Dow gaining around 0.7%. Energy shares were pulled higher after oil rose to its highest level since June on an unexpected drawdown in U.S. crude inventories and hopes for an OPEC production deal.

The other precious metals fell harder than gold, with silver dropping 0.5% while platinum and palladium lost 1.4% and 3.4%, respectively.

At the Comex close: December gold dipped $1.10 to $1,268.60; December silver shed 8 cents to $17.70; January platinum fell $13.90 to $976.60; and December palladium lost $23.95 to $675.60 an ounce.