Home/Commodities/Newsfeed

Gold Rises After US ADP Adds Fewer Jobs Than Expected

Share Print 0

Gold prices rose after a report showed that U.S. employers added fewer workers than forecast last month, boosting demand for the precious metal as a haven.

Companies added 208,000 employees last month, figures from ADP Research Institute showed. That trailed the median forecast of 222,000 in a Bloomberg survey of economists. A whipsaw in crude-oil futures is spurring the biggest price swings for gold in almost nine months. Shanghai trading in the metal has topped last year’s record.

On Dec. 1, gold surged 3.6 percent, the most in 14 months, as oil rebounded from a five-year low. In November, the metal slumped to a four-year low as the dollar rallied and demand ebbed for an inflation hedge. Federal Reserve officials have said that lower energy prices may hold down consumer costs in the near term.

“Gold has got a slight support from the weaker ADP numbers, but I will still be a seller on rallies,” Tommy Capalbo, a broker at Newedge Group in New York, said in a telephone interview. “We will continue to see higher volatility in gold with oil and interest rate-hike uncertainty.”

Gold futures for February delivery rose 0.9 percent to $1,210 an ounce at 10:30 a.m. on the Comex in New York. The metal’s 60-day volatility climbed to the highest since March.

via Bloomberg

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.

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

@alfonso_forex

Back to Top