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Gold Drops Most in Week as Private Jobs Data Revives Rate Woes

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Gold fell the most in a week as a private report signaling U.S. employment growth added to speculation that the Federal Reserve is getting closer to raising interest rates.

Firms added more jobs in August than a month earlier, the ADP Research Institute said on Wednesday. Traders will be focused on the government payrolls report due Friday for more clues on whether growth is strong enough to sustain higher rates. Stubbornly low inflation along with the prospect of tighter U.S. monetary policy has kept a lid on gold, which doesn’t pay interest or offer returns, unlike competing assets.