Gold price holding above $1,650 as ADP said 239K jobs were created in October
(Kitco News) - The gold market continues to tread water around $1,650 an ounce following stronger than expected growth in private sector employment at month, according to the latest employment data from private payrolls processor ADP.
The latest private sector data showed 239,000 jobs were created in October. The data significantly expectations as economists were looking for an increase of 178,000 jobs. At the same time September's employment data was revised down to 192,000 from the initial estiamte of 208,000.
"This is a really strong number given the maturity of the economic recovery, but the hiring was not broad-based. Goods producers, which are sensitive to interest rates, are pulling back, and job changers are commanding smaller pay gains. While we're seeing early signs of Fed-driven demand destruction, it's affecting only certain sectors of the labor market.," Nela Richardson, chief economist at ADP, said in the report.
The gold market was seeing some technical buying momentum ahead of the report and continues to hold on to those gains. December gold futures last traded at $1,659.80 an ounce, up 0.61% on the day.
Along with the solid employment gains, the report said that wages are up 7.7% from last year.