Gold Sees Renewed Selling Pressure Following 253K Rise In Private Sector Jobs
(Kitco News) - The gold market remains under some technical selling pressure with momentum picking up after a report showed that the private sector added more jobs last month than economists were expecting.
Thursday, private payrolls processor ADP said that 253,000 jobs were created in May. Consensus forecasts showed economists were expecting to see job growth of 181,000. April’s employment report was revised slightly lower to 174,000 jobs, down from the initial report of a gain of 177,000 jobs.
Gold was under pressure ahead of the report, seeing some technical selling pressure after hitting a one-month high Wednesday. Despite the stronger-than-expected employment report, gold is still holding key support levels; August Comex gold futures last traded at $1,266.20 an ounce, down 0.72% on the day.
Looking at some of the components of the report, small businesses created 83,000 jobs in May, midsized businesses created 113,000 jobs and large corporations created 53,000 jobs.
A sector-by-sector breakdown, the goods-producing sectors saw broad-based gains with total job growth of 48,000. The service-sectors added 205,000 new jobs last month.
While the stronger-than-expected report, provides some upside momentum for Friday’s nonfarm payrolls employment report, economists have pointed out that the ADP numbers aren’t always a great predictor for the government’s official numbers.