(Kitco News)— The gold market is holding firm, notching its fifth day of record highs, even as the U.S. labor market remains more resilient than expected. The private sector added more jobs than anticipated last month, according to private payrolls processor ADP.
On Wednesday, ADP reported that 183,000 jobs were created in January. The data beat expectations, as consensus forecasts had anticipated job gains of 148,000.
“We had a strong start to 2025, but it masked a dichotomy in the labor market,” said Nela Richardson, chief economist at ADP. “Consumer-facing industries drove hiring, while job growth was weaker in business services and production.”
However, the gold market is not paying much attention to economic data, as it remains a critical safe-haven asset due to growing geopolitical instability. Spot gold last traded at $2,861.20 an ounce, up 0.63% on the day.
The report also noted that wage growth is relatively stable. Year-over-year pay growth for job stayers was 4.7%; at the same time, pay growth for people who changed jobs increased by 6.8%.
While the U.S. labor market remains resilient, the outlook is still uncertain. On Tuesday, the U.S. Labor Department noted a sharp drop in available job openings, an indication of slowing momentum.
Markets are paying a significant amount of attention to the labor market, as it remains a key component of the Federal Reserve’s easing cycle. Last week, Federal Reserve Chair Jerome Powell said that the central bank is in no rush to cut rates as inflation risks rise and the labor market remains healthy.
Although a shallower easing cycle presents some risks for gold, some analysts have said that safe-haven demand remains a stronger driver for the precious metal.
