Gold futures settled slightly higher on Wednesday, recovering from recent sharp losses.
Gold and silver prices had tumbled on Tuesday following the regulators Commodity Futures Trading Commission, and the CME Group’s remarks that they would tighten restrictions on trade in bullion after retail investors used platforms such as Reddit to jack up metal prices.
The CME steeply hiked margin requirements on silver futures on Tuesday, which resulted in silver’s sharp plunge.
A somewhat steady dollar limited gold’s uptick. The dollar index, which advanced to 91.31 in the European session, gave up gains subsequently and was last seen at 91.17.
Gold futures for April ended up $1.70 or almost 0.1% at $1,835.10 an ounce.
Silver futures for March closed higher by $0.490 or about 1.8% at $26.889 an ounce, after suffering a loss of over 10% in the previous session, after hitting an 8-year high on Monday.
Copper futures settled higher by about 1.2% at $3.5655 per pound.
In U.S. economic news, a report from payroll processor ADP showed private sector employment jumped by 174,000 jobs in January after decreasing by a revised 78,000 jobs in December.
Economists had expected employment to rise by 49,000 jobs compared to the loss of 123,000 jobs originally reported for the previous month.
A separate report released by the Institute for Supply Management showed U.S. service sector activity unexpectedly grew at an accelerated rate in the month of January.
The ISM said its services PMI inched up to 58.7 in January from a revised 57.7 in December, with a reading above 50 indicating growth in the service sector. Economists had expected the index to edge down to 56.8 from the 57.2 originally reported for the previous month.
The material has been provided by InstaForex Company – www.instaforex.com