Gold Ends Higher On Soft Data, Ukraine

(RTTNews) - Gold futures settled modestly higher on Wednesday, after some soft private sector jobs data from the U.S. showed employment rising less than expected in February, amid renewed saber-rattling between Moscow and the West. Russian officials are threatening to retaliate against any possible sanctions by seizing U.S. assets in Russia, according to reports.

In economic news, private sector employment in the U.S. rose less than expected in February, with bad winter weather weighing on payrolls, a report from ADP showed Wednesday. As well, activity in the U.S. service sector grew at a slower rate in February, with some respondents attributing it to the rough winter weather, a survey by the Institute for Supply Management showed.

Following President Vladimir Putin ordering thousands of troops back from the Crimea border, Russian officials are in the process of drafting laws to seize U.S. and European Union assets in the event the West prefers to slap sanctions and freeze its assets. Yesterday, Kremlin also stated it has no plans to annex the strategically important Crimea region.

Gold for April delivery, the most actively traded contract, gained $2.40 or 0.2 percent to close at $1,334.30 an ounce on the Comex division of the New York Mercantile Exchange on Wednesday.

Gold for April delivery scaled an intraday high of $1,342.00 and a low of $1,332.70 an ounce.

Investors are now focused on this week's crucial U.S. jobs data for clues on the health of the world's largest economy.

Yesterday, gold futures settled lower, giving back some of the recent gains amid hopes of a peaceful resolution to the crisis in Ukraine with Russian President backing out of the Crimea region in Ukraine.

Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, remained unchanged at 803.70 tons from its previous close.

The dollar index, which tracks the U.S. unit against six major currencies, traded at 80.10 on Wednesday, down from its previous close of 80.16 late Tuesday in North American trade. The dollar scaled a high of 80.27 intraday and a low of 80.05.

The euro traded lower against the dollar at $1.3737 on Wednesday, as compared to its previous close of $1.3742 late Tuesday in North America. The euro scaled a high of $1.3748 intraday and a low of $1.3708.

In economic news, the private sector added 139,000 jobs in February compared estimates for an increase of about 155,000 jobs. The report also showed a downward revision to the job growth in the previous month, with employment rising by 127,000 jobs in January compared to the addition of 175,000 jobs that had been reported, the slowest since August of 2012.

Meanwhile, the ISM's non-manufacturing index dropped to 51.6 in February from 54.0 in January, although a reading above 50 indicates continued growth. Economists expected the index at 53.5. The index is at its lowest level since February 2010.

In Europe, the U.K. service sector continued to expand for a 14th month in February, supported by another marked increase in new business, data from Markit Economics showed Wednesday. The headline Chartered Institute of Purchasing & Supply/Markit Business Activity Index fell marginally to 58.2 in February from 58.3 in January. That was the lowest reading since last June, but indicative of a sharp rise in activity on a monthly basis. The score was forecast at 58.

The Chinese government set 7.5 percent growth target for this year, unchanged from last year. The government vowed to build on domestic spending, while declaring a war against pollution. At the annual session of National People's Congress, the government said it plans to focus on consumption rather than investment to create a balanced economy.