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Gold Futures Settle At Over 3-week Low

Gold prices drifted lower for a third straight day and settled at a more than 3-week low on Wednesday as optimism about an economic recovery amid the reopening of businesses prompted investors to seek riskier assets.

Fairly encouraging services sector data from China and Europe and hopes of more stimulus from central banks dampened demand for the safe-haven metal.

The dollar's weakness failed to provide any significant support to gold. The dollar index was last seen at 97.30, down nearly 0.4% from previous close.

Gold futures for August declined $29.20 or about 1.7% to settle at $1,704.80 an ounce.

Silver futures for July shed $0.300 or 1.7% at $17.958 an ounce, while copper futures for July settled at $2.4875 per pound, losing about 0.1% in the session.

In economic news, a report from payroll processor ADP showed private sector employment slumped by 2.76 million jobs in May after plummeting by a revised 19.557 million jobs in April.

Economists had expected employment to tumble by about 9.0 million jobs compared to 20.236 million job nosedive originally reported for the previous month.

The ISM said its non-manufacturing index rebounded to 45.4 in May after plunging to an eleven-year low of 41.8 in April.

A report from the Commerce Department showed another nosedive in factory orders in the month of April. The report said new orders plunged by 13% in the month, after plummeting by a revised 11% in March.

Economists had expected factory orders to tumble by 14% compared to the 10.3% slump originally reported for the previous month.

The drop in factory orders was due to a sharp 17.7% drop in durable goods orders.

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