(Kitco News) - Gold prices are off their overnight highs but are still holding on to robust gains as the U.S. labor market continues to lose momentum, with slightly fewer private-sector jobs created last month.
Private-sector payroll processor ADP said Wednesday that 109,000 jobs were created in April, up from 61,000 jobs created in March. However, the data missed expectations, as consensus estimates forecast an increase of 118,000 jobs.
“Small and large employers are hiring, but we're seeing softness in the middle,” said Dr. Nela Richardson, chief economist at ADP. “Large companies have resources to deploy, and small ones are the most nimble, both important advantages in a complex labor environment.”
The gold market is not seeing much reaction to the latest labor market data, as prices are experiencing some technical profit-taking after rising above $4,700 an ounce in overnight trading. Spot gold last traded at $4,683.20 an ounce, up nearly 3% on the day.
The report also noted that wage growth was relatively muted, creating benign inflation pressures. The report said workers who stayed in their jobs last month saw annual wage growth of 4.4%; meanwhile, those who changed jobs saw annual wage growth of 6.6%.
Although the headline employment data was relatively mixed, based on broad expectations, Bill Adams, Chief U.S. Economist at Fifth Third Commercial Bank, said the overall labor market remains relatively healthy.
“2026 is shaping up to be a better year for hiring than 2025, despite anxiety about the Iran War,” he said. “The economy entered the year riding tailwinds from tax cuts, higher public spending, and the Fed’s interest rate cuts in late 2025. These tailwinds have contributed to stronger hiring in the last few months. The Iran War is the outlook’s big wildcard. If traffic through the Strait resumes tomorrow, the war’s economic repercussions for the U.S. will be minor. The longer it drags on, the higher energy prices will rise and the greater the strain on consumer finances will be.”
