Gold Back Above $1,500 on ADP Employment Data Miss

Gold prices on Wednesday climbed modestly higher after private-sector employment showed that the pace of hiring in the U.S. is slowing, reviving worries about a recession in the U.S. economy and spurring the purchase of assets perceived as havens.

Gold for December delivery GCZ19, +0.84% on Comex gained $9.40, or 0.6%, to reach $1,498.40 an ounce, after advancing 1.1% on Tuesday. The advance puts the yellow metal closer to a psychologically significant level at $1,500. Meanwhile, December silver SIZ19, +1.58% picked up 11 cents, or 0.7%, to $17.415 an ounce.

Automatic Data Processing Inc.’s private-sector employment showed that businesses added a modest 135,000 private-sector jobs in September. Economists polled by Econoday had forecast a gain of 152,000. The payroll processor also reduced its estimate of new jobs created in August to 157,000 from an original 195,000.

The lackluster report comes after the Institute for Supply Management’s survey on manufacturing registered at 47.8, down from 49.1 in July, below the 50.2 estimated by economists polled by MarketWatch, representing the worst reading since June 2009. Any reading below 50 indicates contraction.

via MarketWatch

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