Gold Rebounds From Seven-Week Low On Physical Demand

London (Apr 2)  Precious-Gold rebounded slightly on Wednesday, yet still trades near seven-week low, after receiving some support from physical demand from China.

The low price encouraged some physical buying from the world's biggest bullion buyer. Volumes for spot contract in Shanghai climbed on Tuesday after hitting its lowest level in two months on March 31.

Data released yesterday from China showed that manufacturing sector expansion widened to 50.3 in March from 50.2 in February.

Later in the day, a report may show U.S. private-sector added 195,000 jobs in March from 139,000 a month ago.

The ADP employment report along with tomorrow's jobless claims give an indication about the labor market before the release of the awaited nonfarm payrolls on Friday.

However, gold prices slipped to seven-week low amid improvement in U.S. data. ISM manufacturing rose further to 53.7 last month from 53.2 a month earlier.

Fed Chairman Janet Yellen said on Monday the U.S. economy will need to hold stimulus for 'some time,' following her March-19 comments, which included the possibility of raising interest rates in six months after the end of bond purchases withdrawal.

The dovish tone of Yellen sparked strong demand on equities, which once again are seen by investors as alternative to gold.

The U.S. dollar inched down against a basket of major currencies, where it is currently hovering around 80.21 after opening at 80.22, according to the dollar index.

Crude oil for May's delivery was little changed to trade near the session' opening around $99.65 a barrel.