(Kitco News) - The gold market could see renewed bullish momentum as the U.S. private sector labor market weakens dramatically, according to the latest data from payroll processing company ADP.
On Wednesday, ADP announced that 32,000 jobs were lost last month. The report was significantly weaker than expected, as consensus forecasts called for job gains of 5,000.
“Hiring has been choppy of late as employers weather cautious consumers and an uncertain macroeconomic environment,” said Dr. Nela Richardson, chief economist, ADP. “And while November's slowdown was broad-based, it was led by a pullback among small businesses.”
The gold market has seen a new push higher in recent days to $4,200 an ounce, led by significant momentum in silver; however, the yellow metal is seeing renewed momentum in its initial reaction to the disappointing employment data.
Spot gold last traded at $4,220.86 an ounce, up 0.36% on the day.
According to some analysts, the weak employment data all but confirms that the Federal Reserve will cut interest rates next week. According to the CME FedWatch Tool, Markets see a nearly 90% chance of easing.
Markets are paying more attention to private-sector employment data as the Federal government has said that it will not publish November’s data because of the 43-day government shutdown.
“Job creation has been flat during the second half of 2025 and pay growth has been on a downward trend. November hiring was particularly weak in manufacturing, professional and business services, information, and construction,” the report said.
Along with the contraction in the labor market, the report highlighted weakening wage growth. Annual pay for workers who stayed in their jobs increased 4.4% last month, down from 4.5% reported in October. For those who changed jobs, wages increased 6.3%, down sharply from 6.7% reported in the prior month.
