Daily Gold Update

Source: Marketwatch

New York— Gold futures rose Wednesday to their highest level in three months, gaining more than 2% after a disappointing private-sector jobs report pressured the dollar and fueled demand for the precious metal as an alternative investment. Gold for December delivery ended up $22, or 2.3%, at $978.50 an ounce on the Comex division of the New York Mercantile Exchange, the highest settlement for the contract since June 4. It rose as high as $981.40 earlier. The London afternoon fixing, a global gold benchmark, stood at $964.75 an ounce on Wednesday, also the highest level since June 4.

The dollar fell against most rival currencies after data based on a sampling of ADP-administered payrolls indicated that employment in the U.S. private sector fell by 298,000 in August. The drop suggests nonfarm payrolls may sink by more than the 250,000 anticipated by economists. The Labor Department will release its much-anticipated August jobs report Friday. Bad economic data typically increase demand for gold as a safe haven. See full story.