(Kitco News) - The gold market, while off its overnight highs, remains within striking distance of $2,800 an ounce even as the U.S. labor market remains fairly resilient as private companies created more jobs than expected in October, according to payroll processor ADP.
ADP said that 233,000 jobs were created this past month, significantly beating expectations. According to consensus estimates, economists were looking for job gains of around 110,000.
“Even amid hurricane recovery, job growth was strong in October,” said Nela Richardson, chief economist, ADP. “As we round out the year, hiring in the U.S. is proving to be robust and broadly resilient.”
The gold market is not paying much attention to the latest employment data as momentum continues to drive the market. December gold futures last traded at $2,788.50 an ounce, up 0.27% on the day.
Analysts note that gold is catching a bid due to growing safe-haven demand ahead of next week’s U.S. Presidential elections. Investors are hedging against growing political uncertainty as polls show the election is a toss-up.
Although the U.S. economy continues to create jobs, the report also noted that wage inflation remains relatively muted.
The report said that wages for people who stayed in their current positions increased 4.6% in the last 12 months, continuing a two-year slowdown.
Workers who switched jobs last month saw their annual pay increase slowed to 6.2%.
