Gold prices edged higher for a second straight day on Wednesday morning. A weaker dollar improved the metal's hedge appeal.
June-dated gold rallied to $929.80, up $4.80 for the session. Prices hit as low as $927.50 in the early going.
The dollar experienced some weakness on Wednesday, adding to gold's hedge value. The greenback tumbled to a 5-day low against the pound, while it eased from a 2-day high against the euro.
On the economic front, Automatic Data Processing's monthly report showed that non-farm private employment fell by 742,000 jobs in March following a revised decrease of 706,000 jobs in February. Economists had expected a decrease of 663,000 jobs compared to the decrease of 697,000 jobs originally reported for the previous month.
Meanwhile, a Institute for Supply Management - Chicago report showed that the index of activity in the sector fell to 31.4 in March from 34.2 in February, with a reading below 50 indicating a contraction in the sector. Economists had been expecting the index to edge up to a reading of 34.3.
Earlier, the Mortgage Bankers Association revealed that its market index of mortgage application volume rose 3 percent on a seasonally adjusted basis for the week of March 27th, following a 32.2 percent jump last week. The Market Composite Index was 1194.4 compared to 1159.4 in the previous week.
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