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(Kitco News) – The price of gold is up 1% on the day and near the highs of the session following significantly weaker growth in private sector employment, according to the company's latest report Private payroll management ADP.
On Wednesday, ADP said 27,000 jobs were created in May, lacking expectations; Consensus forecasts predicted an employment growth of 185,000 people.
Gold prices were in positive territory ahead of the report and rose higher in the initial reaction. The latest gold futures in August traded at $ 1,342.10 an ounce, up 1.02% on the day.
According to reports, this is the lowest growth rate recorded by the private sector since March 2010. Small businesses and the manufacturing sector have been the hardest hit by unemployment in all major sectors.
In parallel with gold prices reaching record highs, the US dollar is trading at record session levels; The US dollar index traded for the last time at 96.99 points.
Although ADP data is not a consistent predictor before Friday's report, some economists have said they pose a downside risk to official government figures. The labor market has been a major asset to the US economy and the latest employment data could add nervousness to a market already worried about the growing risks of recession, some economists said.
"Even considering the absolute absolute difference between this series and the private nonfarm payrolls at first publication, this adds to the downside risk of Friday's report," said Katherine Judge, Senior Economist at CIBC Capital Markets.
Warning: The opinions expressed in this article are those of the author and may not reflect those of the author. Kitco Metals Inc. The author has endeavored to ensure the accuracy of the information provided. However, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes. It is not a solicitation to exchange products, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept any liability for losses and / or damages resulting from the use of this publication.
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