Gold Prices Holding Modest Gains As ADP Reports Job Growth Of 204K
(Kitco News) - The gold market is seeing little reaction to in-line private sector employment data as prices bounce of a four-month low.
Wednesday, private sector payrolls processor ADP said that 204,000 jobs were created in April. According to consensus forecasts, economists were expecting to see job growth of 200,000.
Gold has mostly ignored economic data lately and has mostly been driven by technical momentum and a stronger U.S. dollar. The yellow metal continued to hold on to modest gains following the employment data. June gold futures last traded at $1,311.10 an ounce, up 0.32% on the day.
The data showed broad-based gains throughout the U.S. economy. While the in-line numbers could generate some optimism ahead of Friday’s official nonfarm payrolls report, some economists continue to warn that ADP is an inconsistent predictor of the government numbers.
Currently, economists are expecting that the U.S. economy created 189,000 jobs in April. However, some economists have said that the headline number has become less important than the components of the report. Many economists will be anxious Friday to see if wages have increased.
"With other indicators also suggesting that labour market conditions have held up well in April, the ADP data provide further reason to expect a stronger gain in overall non-farm payrolls when the official data are released on Friday," said Andrew Hunter, U.S. economist at Capital Economics.