PRECIOUS-Gold rises as weak payroll data fuels Fed rate cut bets; silver hits record

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US private payrolls decrease in November, ADP says

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Silver hits record high at $58.94

(Updates for AMERS morning session)

By Anmol Choubey

Dec 3 (Reuters) - Gold prices edged up on Wednesday after weak private payrolls data reinforced expectations of a U.S. interest rate cut next week, while silver hit a fresh record high.

Spot gold was up 0.1% to $4,209.31 an ounce by 10:03 a.m. ET (1503 GMT) after losing more than 1% in the previous session, while U.S. gold futures for February delivery were up 0.5% at $4,241.20.

Silver edged 0.2% lower to $58.28 an ounce after touching a record high of $58.94.

"This morning's miss on ADP data, combined with silver hitting all-time highs overnight, is pushing gold up," said RJO Futures senior market strategist Bob Haberkorn.

U.S. private payrolls fell by 32,000 jobs in November, Wednesday's ADP employment report showed, missing economists' expectations for a 10,000-job increase.

The dollar index dropped 0.5% to its lowest level since October 29, making gold more affordable for other currency holders.

CME's FedWatch tool now shows an 89% chance that the U.S. central bank will cut rates next week, while major brokerages also forecast an interest rate cut at the December 9-10 policy meeting.

Markets are still awaiting the delayed September Personal Consumption Expenditures data, the Fed's preferred inflation gauge, due on Friday.

Lower interest rates tend to favor non-yielding assets such as gold.

Silver is up 101% this year due to concerns about the market liquidity after outflows to the US stocks, its inclusion into the U.S. critical minerals list and a structural supply deficit.

"The strength in silver is due to supply concerns at the exchange levels," Haberkorn said, adding that the metal could touch the $60/oz milestone shortly.

Copper prices also hit a record high on Wednesday by a weaker dollar, supply concerns and tighter availability of metal in warehouses registered with the London Metal Exchange.

Elsewhere, platinum gained 0.6% to $1,647.75 an ounce while palladium lost 0.5% to $1,455.34. (Reporting by Anmol Choubey in Bengaluru; Editing by Leroy Leo)