Daily Gold Update

Source: Marketwatch

San Francisco— Gold futures rallied 1.6% Wednesday, leaving behind a wobbly start as a steep selloff the previous session sweetened prices enough to draw investors back to the metal. Gold for December delivery added $25.60, or 1.6%, to finish up to $1,641.60 an ounce on the Comex division of the New York Mercantile Exchange. �The selling of the past two, three days has probably run its course,� said James Cordier, portfolio manager with Optionsellers.com in Florida. Gold had ended Tuesday�s session 2.5% lower. �Gold is probably set to rally,� he added, readying a move back to the $1,700 an ounce in the next few days.

Earlier Wednesday, the metal had lost some of its appeal as Automatic Data Processing said private-sector payrolls increased 91,000 in September, compared with 89,000 in August. Economists had expected a gain of around 75,000 for September. The ADP report comes ahead of the Labor Department�s employment report due Friday, which includes private- and public-sector payrolls. In another data point Wednesday, the Institute for Supply Management reported a slightly decelerating growth pace in the U.S. services sector. See full story.