Gold prices drop following strong rise in U.S. ADP Employment Data
(Kitco News) - Gold prices are under pressure as momentum as the labor market continues strengthen as more private-sector companies hired more employees-than-expected last month, according to the latest employment data from private payrolls company ADP.
Wednesday, ADP said that 195,000 jobs were created in August, significantly beating expectations; consensus forecasts were calling for job growth of 148,000.
Gold prices were struggling to catch a bid before the data and has lost further ground in initial reaction; December gold futures last traded at $1,548.50 an ounce, down 0.78% on the day.
The gold market is struggling Thursday after news agencies reported a thaw in trade tensions between China and the U.S. The two nations are planning to hold preliminary talks later this month to kick-start negotiations in October.
According to some economists, the latest employment data does provide some optimism ahead of Friday's official nonfarm payrolls report. However, they have also cautioned that the ADP numbers are not always a consistent predictor of the government estimates.