Precious Metals Preview: COMEX gold marches towards $3400 mark, Trump urges for lower rates

Gold prices have stayed largely steady for most part of the week although the counter maintains support near a four-week high as dollar weakness persists. Weak data from the US and consistent pressure to reduce interest rates is nullifying any safe haven demand for the greenback. Yesterday, 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. Moreover, ISM service sector activity 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. President Donald Trump once again urged Federal Reserve Chair Jerome Powell to lower interest rates, citing weak ADP jobs report. The yellow metal is also gaining constant support from geo-political tensions and US China trade tensions. The counter is currently trading flat at $3398.90 an ounce.

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