Investing.com - Gold prices trimmed gains on Wednesday, after the release of strong U.S. employment data, but the precious metal was still supported as demand for the dollar fizzled amid speculation over the next head of the Federal Reserve.
Comex gold futures were little changed at $1,278.63 a troy ounce by 09:00 a.m. ET (13:00 GMT), off session highs of $1,284.93 and still close to the previous session's eight-week low of $1,271.00.
Payrolls processor ADP reported on Wednesday that the U.S. private sector added 135,000 jobs last month.
But sentiment on the greenback remained fragile amid speculation the next Fed head could be less hawkish than expected continued to weigh.
Fed Governor Jerome Powell and former governor Kevin Warsh were both interviewed at the White House last week to replace current Fed Chair Janet Yellen next February.
While the two men are seen as serious candidates, Powell is considered as more dovish than Warsh, who has criticised the Fed's bond-buying programme in the past.
The dollar strengthened earlier in the week on speculation that Warsh might be the leading candidate to replace Yellen.
The greenback has also been supported recently by hopes for U.S. tax reform after the Trump administration outlined plans for a sweeping overhaul of the U.S. tax code last week.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.24% at 93.20, just off a one-and-a-half month highs of 93.78 hit on Tuesday.
Gold is sensitive to moves in the dollar. A weaker dollar makes gold less expensive for holders of foreign currency.
Fresh comments from Janet Yellen were at the top the agenda for global financial markets on Wednesday, as they look for further hints on the timing of the next rate hike.
Yellen is due to deliver a speech at a community banking conference hosted by the Federal Reserve Bank of St. Louis at 3:15 p.m. ET (19:15GMT).
Elsewhere on the Comex, silver futures rose 0.25% to $16.69 a troy ounce.