Gold prices rise ahead of key US data

Gold alloys

Gold prices gained ground today, June 5, with investors awaiting the release of the top-tier US ADP jobs and ISM Services PMI data for fresh cues on the Federal Reserve's interest rate outlook.

Bullion for August delivery climbed by 0.23% to $2,352.70 per ounce at 10:13 am Makkah time, with spot prices also up 0.21% to $2,331.96 an ounce.

Silver futures for July delivery, likewise, soared 0.35% to $29.72 per ounce, while platinum spot prices inched 0.32% lower to $989.72 per ounce.

All eyes are on today’s release of the ISM Services PMI, which is seen to rise to 51 points in May from 49.4 points the previous month, exceeding the 50-point level that separates growth from contraction.

This is coupled with the issuance of the ADP private sector Employment Change data amid expectations that the US economy added 175,000 jobs last month, compared to 192,000 in April.

"The key event is the ISM services report... the ideal scenario for gold bulls is to see the ISM services remain just below 50 level, with the prices paid component expanding at a slower pace – as this satisfies the 'soft landing' scenario the Fed are aiming for," said City Index senior analyst Matt Simpson, Reuters reported.