Gold Prices Push Into Positive Territory Following Disappointing ADP Jobs Data
(Kitco News) - Gold prices turned positive Thursday as panic grips financial markets, and after private sector added fewer jobs than expected in November, according to the latest data from private-payrolls processor ADP.
A total of 179,000 jobs were created during the previous month, ADP said on Thursday. Consensus forecasts were calling for job gains of 195,000. October's employment data was revised down by 2,000 jobs to 225,000.
Ahead of the report, gold prices were under modest pressure and have spiked modestly higher pushing into positive territory in initial reaction to the employment data. February gold futures last traded at $1,243.50 an ounce, up 0.08% on the day.
The disappointing employment data has added to the risk-off sentiment in the marketplace, putting gold in focus as a safe-haven asset. Ahead of the data, the gold market was struggling to hold on to recent gains as financial markets face broad-based liquidation.
The latest employment data, highlights growing concerns that the U.S. economy is starting to slow as fiscal stimulus measures, introduced at the start of the year, start to fade, according to some market participants. Although Economists note that ADP is not a consistent predictor of Friday's official jobs numbers, the data does highlight downside risk to the U.S. labor market.
Andrew Hunter, U.S. economist at Capital Economics said that although the latest employment numbers were softer-than-expected, it still shows positive growth for the U.S. economy and will convince the Federal Reserve to continue to raise interest rates in December.