(Kitco News) – The gold market is seeing some renewed selling pressure in delayed reaction as U.S. companies went on a hiring spree last month, according to private payrolls processor ADP.
Thursday, ADP said that 978,000 jobs were created this past month, significantly beat expectations; consensus forecasts were calling for job growth of around 645,000.
In initial reaction to the ADP data, the gold market managed to hold relatively steady. However, in delayed reaction, following more positive economic data, the precious metal has lost further ground. August gold futures last traded at $1,883.20 an ounce, down 1.40% on the day.
According to some economists and market analysts, the latest ADP numbers creates some significant upside potential for Friday’s official government employment data. Currently economists are expecting that the nonfarm payrolls report will show that 645,000 jobs were created last month.