Gold Holding Recent Gains As ADP Shows Job Gains of 213K In January
(Kitco News) - The gold market is holding its own, trading near its highest level in eight months after private-payrolls processor ADP reported stronger-than-expected job growth in January.
A total of 213,000 jobs were created during the previous month, ADP said Wednesday. According to consensus forecasts, economists were expecting to see job growth of 180,000. Meanwhile, December’s data were revised slightly lower to 263,000 jobs.
Gold prices were trading near an eight-month high ahead of the report and have extended those gains in initial reaction to the data; April Comex gold last seen trading at $1,316.80, up 0.12% on the day.
The report showed broad-based gains throughout the economy. The only sector that saw declines last month was the resource sector.
Although the ADP data is not a consistent predictor ahead of Friday's report, some economists have said that it does provide some upside risk to the official government numbers. The labor market has been a significant bright spot for the U.S. Economy; however, some analysts have said that investors should pay more attention to wage growth than the headline jobs number.
Some economists have said it is only a matter of time before wages and inflation pick up as the U.S. economy remains at full employment.