Gold closed higher again on Wednesday as better-than-expected employment data boosted prospects for inflation, increasing the need for the hedge investment.

June-dated gold climbed to $911.00, up $6.70 on the session. The precious metal is up more than $20 so far this week.

The Automatic Data Processing report showed that non-farm private employment fell by 491,000 jobs in April following a revised decrease of 708,000 jobs in March. Economists had expected a decrease of 645,000 jobs compared to the loss of 742,000 jobs originally reported for the previous month.

The employment report was the first of three this week. The weekly initial jobless claims report is due tomorrow while the Labor Department's monthly employment report due to be released on Friday.

Economists currently expect the Labor Department report, which includes government jobs, to show that employment fell by 620,000 jobs in April following a decrease of 663,000 jobs in March. The unemployment rate is expected to rise to a fresh 25-year high of 8.9 percent.

Traders also await the release of the results of the government's stress tests of leading financial institutions after the close of trading on Thursday. Media reports surfaced saying that the government stress tests have determined that JP Morgan (JPM), Goldman Sachs (GS), American Express (AXP), and Bank of New York Mellon (BK) will not need additional capital.

Meanwhile, the dollar failed to improve much against the sterling, hovering right around yesterday's 4-month low. The dollar was little-changed against the euro after moving away from a monthly low on Tuesday night. Gold generally moves opposite the dollar because of the precious metal's value as a hedge investment.

In other metal trading, copper continued its upward trend. July-dated copper rallied to $2.187 per pound, up 10 cents on the session.

Meanwhile, light sweet crude ended at $56.34 per barrel, up $2.50 on the session. Energy Information Administration data revealed crude oil inventories increased by 600,000 barrels from the previous week. Experts were looking for a build of about 2.2 million barrels.

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