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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