Gold Prices on Move

NEW YORK (TheStreet) -- Gold prices Wednesday were rising after a disappointing U.S. ADP unemployment number boosted demand for the alternative investment.

Gold for June delivery was adding $9.30 to $1,115 an ounce at the Comex division of the New York Mercantile Exchange. Prices Wednesday traded as high as $1,119.90 and as low as $1,103.10. The U.S. dollar index was slipping 0.62% to $80.97. Gold's spot price was up over $11 a troy ounce, according to Kitco's gold index.

High Unemployment Boosts Gold

Gold futures came under pressure Tuesday after contract rollover hurt prices. Pent-up demand boosted prices Wednesday and prompted gold to reach for the $1,125 area. Gold's appeal as a safe haven also supported prices after the Automated Data Processing report said the private sector lost 23,000 jobs in March. Many analysts were hoping for job growth heading into Friday's U.S. nonfarm payroll report.

"Gold for the moment continues to consolidate with good volumes of physical and investment demand providing support," says James Moore, analyst at thebulliondesk.com in his daily metals report. The popular physically backed exchange-traded fund, SPDR Gold Shares(GLD) held at 1,129.82 tons after investors bought the precious metal this week on weakness. "However, the metal remains capped by overhead midterm downtrend resistance ... with another stalled rally potentially triggering a retest of the $1,085 level."

Platinum prices were popping $20.90 to $1,647 after Lonmin, the world's third-largest platinum producer, announced it shut down its Number One furnace. The company is hoping to repair the unit in 30 to 40 days. Palladium was also higher by $10 to $480.35.

Silver prices were up 17 cents to $17.50 and copper was down 1 cent at $3.55.

Mining stocks, typically a more leveraged way to invest in gold, were mixed. Barrick Gold(ABX) was rising 1.91% to $38.4 while Newmont Mining(NEM) was up to $51.32. Other large-cap miners such as Kinross Gold(KGC) and Goldcorp(GG) were at $17.15 and $37.33, respectively.

Shares of Randgold Resources(GOLD) were popping 4% to $77.27 after the company announced that resources rose to 27.33 million ounces during 2009. Freeport McMoRan Copper & Gold(FCX) was ticking slightly up to $83.88.

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