Gold prices holding gains as U.S. ADP shows 534K jobs gains in November
(Kitco News) - The gold market is holding on to modest gains Wednesday even as the private sector labor market continues to improve, according to the latest report from private-sector payrolls processor ADP.
Wednesday, ADP said that 534,000 jobs were created this past month, slightly beating expectations; consensus forecasts were calling for job growth of around 525,000.
The gold market was trading in positive territory ahead of the data and is holding firm in initial reaction to the labor market data. February gold futures last traded at $1,786.50 an ounce, up 0.56% on the day.
Although the U.S. labor market continues to improve, many economists have noted that wages are also being driven higher, leading to longer-term inflation pressures.
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According to some economists the latest ADP employment report creates some upside risks to Friday’s official employment numbers. The consensus forecast for November’s nonfarm payrolls numbers are for job growth of 553,000. The unemployment rate is expected to fall to 4.5% and wage are forecasted to grow 0.4%.
While inflation pressures are expected to rise, the latest employment numbers, market analysts have noted it will give the Federal Reserve room to tighten monetary policy at a faster pace.
Tuesday, Federal Reserve Chair Jerome Powell said that the central bank will look at increasing the speed of its bond-tapering during its monetary policy meeting in two weeks.