Gold boosted by weak U.S. ADP data

Gold hit the highest levels of the session on Wednesday, after data showed that U.S. non-farm private employment rose less-than-expected in January and after China's central bank cut banks' reserve requirement ratios in a surprise decision.On the Comex division of the New York Mercantile Exchange, gold futures for April delivery rose by as much as 0.91%, or $11.60, to hit $1,271.90, before trading at $1,267.60 during U.S. morning hours, up $7.30, or 0.58%Futures were likely to find support at $1,252.10, the low from January 29, and resistance at $1,294.60, the high from January 28.Payroll processing firm ADP said non-farm private employment rose by 213,000 in January, below expectations for an increase of 225,000 and slowing from jobs gains of 253,000 in December.

Reliable guide for the government jobs report due on Friday, February 6, it does give guidance on private-sector hiring.
Market analysts expect the data to show that the U.S. economy added 234,000 jobs in January, slowing from a gain of 252,000 in December, while the unemployment rate was forecast to hold steady at 5.6%.The People’s Bank of China announced that it lowered the amount of deposits banks are required to hold as reserves to 19.5% from 20.0%, in an effort to boost lending and spur economic activity in the world’s second largest economy.
A day earlier, gold lost $16.60, or 1.3% to settle at $1,260.30 amid hopes that Greece’s new government would be able to reach a compromise with its international creditors on the terms of its bailout.Greece's government outlined its plans to renegotiate the terms of its €140 billion bailout, retreating from election pledges to demand a debt write-down.