Gold advanced for the second day as the dollar's drop enhanced demand on dollar-denominated commodities, ahead of the Fed meeting. Some investors expect U.S. policy makers to announce in their two-day Fed meeting some details about a third round of stimulus. Although the recent data from the U.S. is showing improvement, yet the economy needs a strong push to boost recovery. Data released on Wednesday showed that the U.S. private sector employment added 111,000 jobs last month, beating forecast of 100,000 while September's reading was upwardly revised to 1116,000 from the initial 91,000. The report provided some clues regarding the status of the labor sector before the release of the infamous jobs report on Friday. As a result, the greenback was impacted by the buoyant report as the improvement in the sentiment dampened demand on the greenback as a safe haven on the one hand and as talks about further QE pushed it down, as more money printing will cause it to depreciate due to excess supply, on the other. The dollar index, which tracks the greenback's movements versus six major currencies, is currently hovering around 76.90 compared with the day's starting level of 77.31. However, the dollar's losses were minimized as doubts stemming from Greece raised doubts about the European plan announced last week. Greek Prime Minister George Papandreou mentioned that a referendum on the latest euro area bailout out package will determine the future of his country in the euro. Worries reignited in markets since in the case of rejecting the bailout in the referendum, the debt-mired economy would be prone to a disorderly default which might end its membership in the euro. Also, the European rescue fund has delayed the issuance of a 3 billion euro bond to finance Ireland's bailout package as a result of the turmoil in markets, according to news report released today. Spot gold is traded around $1740.97 an ounce after recording a low $1714.10 and a high of $1742.63. Crude oil for December delivery retreated to trade around $93.12 barrel compared with the day's starting level of $91.64.
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