Key points:
- Gold purchases by central banks strong in April – WGC
- US payrolls data due on Friday
- Upside payrolls print to see rate-cut shift to Nov- analyst
Gold prices rose on Wednesday helped by a weakness in the U.S. dollar and Treasury yields, as investors waited for more economic data to gauge the Federal Reserve’s next step on monetary policy.
Spot gold GOLD was up 0.3% at $2,335.62 per ounce, as of 0609 GMT, after prices fell 1% in the previous session. U.S. gold futures 
GOLD rose 0.4% to $2,355.50.
The dollar inched up after hitting a near two-month low in the last session, while benchmark 10-year 
US10Y Treasury yields lingered near their lowest level in almost three weeks, making bullion more attractive to investors.
“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.
The U.S. ISM services data is due at 1400 GMT. Markets are also awaiting the ADP employment report due at 1215 GMT on Wednesday and the non-farm payrolls (NFP) data on Friday for further clues about the health of the U.S. economy. (FEDWATCH)
“An upside print in the NFP could see the expected timeline for the first rate cut shift back in favour of November, while a downside miss could see September firm as the favoured month for potential action from the Fed,” said Tim Waterer, chief market analyst at KCM Trade in a note.
Higher interest rates increase the opportunity cost of holding the non-yielding asset.
Net purchases of gold by global central banks rose in April, the World Gold Council (WGC) said, signalling continuing strong appetite from the sector despite high prices for the metal.
Among other metals, spot silver 
XAGUSD1! rose 0.7% to $29.69 per ounce, platinum 
PL1! was up 0.3% at $990.24 and palladium 
XPDUSD1! gained 1% to $924.12.
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