09:24 AM EDT, 07/03/2024 (MT Newswires) -- Gold traded higher early on Wednesday as the dollar and treasury yields fell after a report showed a smaller than expected rise in private-sector employment last month and a larger than expected increase in initial jobless claims.

Gold for August delivery was last seen up US$24.70 to US$2,358.10 per ounce.

The rise comes as the ADP Employment Report showed the private sector added 150,000 jobs in June, under expectations of a rise of 160,000, according to Marketwatch, and down from 152,000 jobs added in May.

Initial jobless claims rose to 238,000 last week, according to the U.S. Labor Department, up from 233,000 a week earlier, which was also the consensus forecast.

The two reports added to expectations the U.S. economy is slowing as interest rates remain at a 23-year high, and could revive hopes for a near-term cut to rates from the Federal Reserve. The CME Fedwatch tool now shows a 64% probability for a 25 basis point cut to rates at the September 18 meeting of the central bank's policy committee.

The dollar moved lower following the employment data, with the ICE dollar index last seen down 0.25 points to 105.47.

Treasury yields also narrowed, with the U.S. two-year note last seen paying 4.745%, down 0.4 basis points, while the yield on the 10-year note was down 3.4 basis points to 4.403%.