Weak ADP Boosts Gold Higher

Gold prices are solidly higher in early U.S. trading Wednesday, on some more safe-haven demand and on fresh technical buying. A weaker-than-expected monthly ADP jobs report also gave a boost to gold prices. The still-wobbly U.S. stock market continues to make for a nervous market place at present, which is a bullish underlying factor for gold. April gold was last up $8.80 at $1,260.00 an ounce. Spot gold was last quoted up $5.70 at $1260.50. March Comex silver last traded up $0.283 at $19.71 an ounce.

The ADP national employment report was released Wednesday morning and showed a rise of 175,000 jobs in January. The consensus forecast was for a rise of 189,000 jobs in the ADP report. Gold extended its price gains in the aftermath of the slightly weaker-than-expected ADP report.

While traders and investors are still concerned about the situation regarding some emerging market currencies being in turmoil, most of those troubled smaller currencies have stabilized this week. This helped the Japanese stock market make a recovery Wednesday. The Chinese Lunar New Year holiday has China on holiday this week. That is keeping other Asian markets somewhat subdued. U.S. stock indexes are slightly lower in early electronic trading Wednesday.

via Kitco

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza