Gold Prices Shrug Off Surging Private-Sector Employment Gains
(Kitco News) - Gold is holding on to support above $1,200 an ounce after processor ADP reported stronger-than-expected job numbers in September.
The report said that a total of 230,000 jobs were created last month, handily beating expectations. According to consensus forecasts, economists were projecting gains of 185,000 jobs.
Gold prices were holding critical support above $1,200 ahead of the report and is still little reaction to the data. December gold futures last traded at $1,204.50 an ounce, down 0.21% on the day.
The data showed broad-based gains throughout the sectors in the U.S. economy. According to some economists, the data increase the upside risk for Friday's nonfarm payrolls report. However, others said that this report has never been a consistent predictor for the official government numbers.
“The average difference between the ADP and official BLS measures of private employment growth has been around 50,000 over the past 12 months,” said Andrew Hunter, U.S. economist at Capital Economics. “That said, plenty of other signs, such as the continued downward trend in initial jobless claims and the latest employment surveys, also suggest that labor market conditions are still very strong. We expect that to keep the Fed raising interest rates steadily until the middle of next year.”