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(Kitco News) – Gold futures prices are under pressure, but continue to hold around $ 1,750 an ounce, even as more Americans found jobs last month, processor says ADP private payroll.
On Wednesday, ADP said 568,000 jobs were created in September, far exceeding expectations; consensus forecasts were for job growth of around 425,000.
The gold market was trading in negative territory ahead of the report and has reacted little to the latest jobs data. December gold futures last traded at $ 1,757.90 an ounce, down 0.17% on the day.
Not only do the latest ADP figures show robust job market growth, the company expects the pace of hiring to continue to pick up.
“Current bottlenecks in hiring are expected to ease as health conditions related to the COVID-19 variant continue to improve, paving the way for solid job gains in the coming months. “said Nela Richardson, chief economist at ADP.
According to some economists, the latest jobs data does not bode well for the gold market as it offers the Federal Reserve an opportunity to follow through on plans to cut its monthly purchases of gold bonds. ‘by the end of the year. Healthy job growth has been a critical target the central bank is watching as it prepares to change its monetary policies.
“It looks like the job gain will be labeled ‘decent,’ which is the threshold suggested by Fed Chairman Jerome Powell to push forward the announcement of a phased-down QE cut at the meeting. at the end of November, “said Paul Ashworth, chief US economist at Capital. Economy.
However, analysts also note that ADP is a poor predictor ahead of official government data on Friday.
“The ADP report has a poor track record of predicting non-farm payrolls, particularly since the pandemic, but last month it portended a soft reading. Whether it’s luck or a better follow-up we’ll find out on Friday, but I don’t think anyone is investing too much in ADP right now, ”said Adam Button, chief currency strategist at Forexlive.com.
Disclaimer: 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. It is not a solicitation to effect an exchange of 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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