Spot gold climbed to $4,210.50, marking a 3% gain for the day as markets digested the weaker-than-expected employment data. This shift in momentum compounds earlier overnight gains, reflecting investor anxiety regarding the pace of the US economic recovery.
Gold rallies past $4,200 as US job growth stalls
With private-sector payrolls expanding by only 44,000 in July, gold prices have surged to session highs above $4,200 an ounce. The ADP report fell significantly short of the 68,000 jobs anticipated by analysts, signaling a cooling labor market that has sent investors flocking to the safety of precious metals.
Alongside the tepid hiring numbers, the ADP report highlighted an uptick in wage inflation. Dr. Nela Richardson, chief economist at ADP, noted that rapid pay growth for those switching jobs points toward localized supply constraints. According to Richardson, hiring patterns are currently in flux as employers adjust to an increasingly complex macroeconomic landscape.
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