Gold price holds near new record highs as ADP report disappoints in July
(Kitco News) Gold remained near new record highs, just above $2,050, after private-payrolls processor ADP reported lower-than-expected job numbers for July but a big positive revision for June.
A total of 167,000 jobs were created during the previous month, down from June’s upwardly revised 4.314 million, ADP said on Wednesday.
The report came in well below market expectations, which projected gains of more than one million jobs.
In an initial reaction to the data, gold ticked down slightly but remained near its new record highs of $2,060.20 with December Comex gold last seen trading at $2,051.40 an ounce, up 1.50% on the day.
Looking at the components of the report, most of the job growth was reported in large companies that employ 500 or more people with 129,000 new jobs added. Small companies that employ up to 50 people were in the second spot with 63,000 jobs added. Midsized companies saw a loss of 25,000 jobs.
The service-providing sector saw a gain of 166,000 new jobs in July while the goods-producing sector was up by only 1,000 new jobs.
June’s strong upward revision shows that smaller-than-expected figure for July might not be as concerning, said CIBC World Markets economist Katherine Judge.
“June's reading was revised up from 2369K to 4314K, making the disappointment less worrisome. The reading suggests that 37% of the jobs lost in March and April were recouped as of July. That's roughly in line with what our below consensus call for 1.1 million jobs to have been added to the non-farm total in July would imply,” Judge said.