Gold fluctuated after three days of gains, as traders awaited signals from a flood of economic data expected to be released following the US government's return to work after the longest shutdown in its history.
The precious metal traded at a level slightly above $4,100 an ounce, paring gains made earlier on Wednesday, after ADP Research data showed that U.S. companies lost an average of 11,250 jobs per week during the four weeks ending October 25.
These figures reinforce concerns about a weak labor market and increase the likelihood of further interest rate cuts, which is positive for gold, which does not yield interest.
Official data expected after the end of the government shutdown
Investors are awaiting a series of official data releases as the longest government shutdown in US history nears its end. The government is expected to resume operations in the coming days after the Senate passed a temporary funding measure, ending traders' reliance on private data and adding more certainty to their expectations, while also dispelling the uncertainty surrounding upcoming interest rate decisions.
Gold retreated from its record high above $4,380 an ounce last month as investors took profits on a rally some described as too rapid and overspeculative. In a sharp reversal, gold-backed exchange-traded funds (ETFs) recorded net outflows for three consecutive weeks, according to data compiled by Bloomberg.
Best annual performance since 1979
Nevertheless, the precious metal is still up more than 55% since the start of the year, heading for its best annual performance since 1979, supported by several factors, including high central bank purchases.
Gold fell 0.5% to $4,104.45 an ounce by 1:43 p.m. Singapore time, while the Bloomberg Dollar Spot Index rose 0.1%, and silver, platinum and palladium all saw slight declines.
