Gold Prices Close Nearly Unchanged After Seeing Early Strength

After showing an early move to the upside, the price of gold pulled back near the unchanged line over the course of the trading day on Wednesday.

Gold for December delivery ended the day up by just $0.40 at $1,814.50 an ounce after reaching a high of $1,835.90 an ounce.

The precious metal initially benefited from its appeal as a safe haven after payroll processor ADP released a report showing private sector employment increased by much less than expected in the month of July.

ADP said private sector employment rose by 330,000 jobs in July after surging by a downwardly revised 680,000 jobs in June.

Economists had expected private sector employment to spike by 695,000 jobs compared to the jump of 692,000 jobs originally reported for the previous month.

Buying interest waned over the course of the morning, however, as a separate report from the Institute for Supply management showed growth in U.S. service sector activity accelerated much more than expected in July.

The ISM said its services PMI jumped to an all-time high of 64.1 in July after pulling back to 60.1 in June, with a reading above 50 indicating growth in the sector. Economists had expected the index to inch up to 60.4.

The pullback by the price of gold also came as the value of the U.S. rebounded after moving to the downside earlier in the day.

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