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(Kitco News) – Gold prices continue to fall below $ 1,700 even as the U.S. economy created fewer private sector jobs than expected last month, according to private payroll processor ADP.
On Wednesday, ADP said 517,000 jobs had been created in March; however, according to consensus forecasts, economists expected to see a reading of around 552,000 jobs.
Although the latest labor market data fell short of expectations, the report noted that this was the fastest pace of employment growth in six months.
The gold market sees only a modest reaction to the latest labor market data as it enters positive territory, but remains below critical support. June gold futures last traded at $ 1,686.10 an ounce, roughly unchanged that day.
Although the labor market continues to improve, economists note that there is still a long recovery ahead to return to pre-pandemic levels. The Federal Reserve has also indicated that it will maintain its ultra-accommodative monetary policy as weakness persists in the labor market. With the US central bank not expecting to raise interest rates anytime soon, many market analysts remain bullish on gold for the long term.
Despite the lack of headline employment figures, Michael Pearce, senior US economist at Capital Economics, said the data shows robust growth as the US economy begins to reopen.
“With high-frequency indicators signaling a continued recovery in activity and stimulus payments starting to trickle down, we expect monthly payroll gains to accelerate over the next few months,” he said. -he declares.
Looking at official government figures on Friday, Capital Economics expects to see job growth of 700,000 jobs.
Warning: The opinions expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure the accuracy of the information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is for informational purposes only. This is not a solicitation to exchange commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article accept no responsibility for any loss and / or damage resulting from the use of this publication.
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