The gold market edged closer to session highs on Wednesday morning following a report from ADP indicating a slowdown in private sector job creation for the third consecutive month.
According to ADP, 150,000 jobs were added in June, falling short of expectations which had anticipated 170,000 new jobs. May’s figures were revised upward from 152,000 to 157,000 jobs. Nela Richardson, ADP’s chief economist, noted that while job growth remained solid, it lacked broad-based strength. She highlighted a notable rebound in hiring within the leisure and hospitality sectors, which offset weaker performance in other areas.
In response to the employment data, spot gold traded at $2,348.89 per ounce, marking an increase of 0.83% for the day and reflecting heightened investor interest in safe-haven assets amidst economic uncertainties.
The ADP report also highlighted a 4.9% year-over-year increase in annual wages. Within the service-providing sector, job gains were led by leisure & hospitality (+53,000), professional & business services (+25,000), trade, transportation & utilities (+15,000), education & health services (+9,000), and financial activities (+11,000), while the information sector saw a decline of 3,000 jobs. In the goods-producing sector, gains were noted in construction (+27,000), but declines were observed in manufacturing (-5,000) and natural resources & mining (-8,000).
The latest employment figures underscore ongoing dynamics in the U.S. labor market, influencing market sentiment and reinforcing gold’s appeal as a hedge against economic uncertainty.
