(Kitco News) - Gold prices are back above $5,000 an ounce and could continue to attract more bullish attention as the U.S. labor market shows signs of slowing momentum, according to the latest data from private payrolls processor ADP.
On Wednesday, ADP announced that 22,000 jobs were created last month. The report was weaker than expected, as consensus forecasts had called for job gains of 46,000. The subdued momentum follows downwardly revised numbers for December, which showed that 37,000 jobs were created.
“Job creation took a step back in 2025, with private employers adding 398,000 jobs, down from 771,000 in 2024,” said Dr. Nela Richardson, chief economist at ADP. “While we've seen a continuous and dramatic slowdown in job creation for the past three years, wage growth has remained stable.”
The gold market is not seeing much reaction to the latest U.S. employment data; however, analysts note that the report should continue to support the precious metal’s recovery after sharp losses on Friday and Monday. Spot gold last traded at $5,045.60 an ounce, up 2% on the day.
The ADP numbers are the only employment data markets will receive this week, as a brief government shutdown has delayed the release of the government’s official report.
Despite the limited data, economists note that there is clear evidence the U.S. labor market is slowing, which could support plans for the Federal Reserve to ease interest rates through the second half of the year.
The ADP report also shows that wage inflation, while elevated, is starting to cool. The report said that wages for workers who stayed in their jobs saw annual pay remain relatively unchanged at 4.5%. For workers who changed jobs, annual wages increased by 6.4%, down from December’s increase of 6.6%.
