Gold and Silver Snips

NEW YORK (MarketWatch) -- Gold futures rose above $1,000 an ounce Wednesday, as the dollar declined after the release of upbeat economic data in the U.S., burnishing the appeal of the precious metal.

The U.S. economy shrank in the second quarter at a smaller pace than earlier forecasts, the Commerce Department reported Wednesday. Meanwhile, private-sector employers in September shed the fewest jobs since July 2008.

Gold for December delivery, the most actively traded contract, gained $7, or 0.7%, to $1,001.40 an ounce on the Comex division of the New York Mercantile Exchange. The contract earlier hit an intraday high at $1,006.40.

October gold, the front-month contract, was last up $6.30, or 0.6%, at $999.40 an ounce, after rising as high as $1,003.

Gold prices, as gauged by front-month contracts, are set to end the month up about 5%.

"The softer dollar has supported gold overnight and will continue to provide direction in the coming sessions as risk appetite fluctuates," said James Moore, analyst at TheBullionDesk.com.

"The overall trend of improving economic indicators and inflation concerns look set to push gold higher again and ultimately challenge last year's all-time high," Moore wrote in a note to clients.

The U.S. dollar remained lower on Wednesday after the government said U.S. real gross domestic product for the second quarter was revised to a decline of 0.7% annualized from the earlier estimate of a 1% drop.

The dollar index /quotes/comstock/11j!i:dxy0 (DXY 76.76, -0.36, -0.47%) , which tracks the performance of the greenback against a basket of currencies, fell 0.4% to 76.844 in recent trading.

The U.S. currency and gold typically move in opposite directions. Weakness in the dollar boosts gold prices because it makes the metal cheaper for holders of other currencies.

In other economic data, private-sector firms in the U.S. cut 254,000 jobs in September, according to the ADP employment report released Wednesday.

Economists are expecting a decline of 167,000 in nonfarm payroll jobs when the Bureau of Labor Statistics reports its September estimate on Friday.

Other metals also posted gains Wednesday. December copper futures rose 6.05 cents, or 2.2%, to $2.7895 a pound. Silver for December delivery gained 16.7 cents, or 1%, to $16.34 an ounce.

October platinum gained $10.1, or 0.8%, to $1,281 an ounce and December palladium futures gained $5.15, or 1.8%, to $295.15 an ounce.

Holdings in SPDR Gold Trust /quotes/comstock/13*!gld/quotes/nls/gld (GLD 98.83, +1.40, +1.44%) , the biggest gold exchange-traded fund, stood at 1,094.11 metric tons Tuesday, unchanged for a fourth session