US service sector sags in June as orders sink
US weekly jobless claims rise as labor market slows
Dollar hits twoweek low
US nonfarm payrolls report due on Friday

July 3 Reuters Gold prices rose more than 1 to a near twoweek high on Wednesday, driven by increased bets for a September interest rate cut by the Federal Reserve after recent U.S. data suggested that the labor market was softening.

Spot gold was up 1.4 at 2,362.88 per ounce by 1151 a.m. ET 1551 GMT. U.S. gold futures climbed 1.7 to 2,372.50.

The precious metals complex, as well as base metals, are rallying across the board on ADP and jobless claims data that reinforces the 39;softening economy39; narrative which will likely lead to the first rate cut in September, said Tai Wong, a New Yorkbased independent metals trader.

Bulls are trying to get ahead of what many believe will finally be a weak payrolls report on Friday, he added.

Firsttime applications for U.S. unemployment benefits increased last week, while the number of people on jobless rolls rose further to a 212 year high towards the end of June, consistent with a gradual cooling in the labor market.

A measure of U.S. services sector activity slumped to a fouryear low in June amid a sharp drop in orders, potentially hinting at a loss of momentum in the economy at the end of the second quarter.

Following the U.S. data, the dollar slipped to a twoweek low, making gold more attractive for other currency holders, while the yield on the benchmark…