2020.09.0210:43:00UTC+00Gold Little Changed As Dollar Rebounds On Recovery Hopes

Gold prices edged lower on Wednesday as the dollar found some support from solid U.S. manufacturing data released overnight.

Spot gold slid 0.1 percent to $1,968.53 per ounce, after having hit as high as $1,991.91 on Tuesday, its highest since Aug. 19. U.S. gold futures were down 0.2 percent at $1,974.35.

On Tuesday, the Institute for Supply Management released a report showing manufacturing activity in the U.S. expanded at a faster rate in the month of August.

The ISM said its purchasing managers index rose to 56.0 in August from 54.2 in July. Economists had expected the index to inch up to 54.5.

Elsewhere, solid manufacturing PMIs this week from China and the euro zone also fueled optimism of a recovery from the coronavirus pandemic.

All eyes are now on the U.S. ADP jobs report due later in the day, with economists expecting the U.S. private sector to add 950K jobs in August vs. +167K last.

In addition, Cleveland Federal Reserve President Loretta Mester and NY Fed President John Williams are scheduled to speak later in the day.

Fed Governor Lael Brainard on Tuesday said the U.S. central bank would need to roll out more stimulus in the months ahead to fulfil its new promise of stronger job growth and higher inflation.