Gold Prices Modestly Lower Following 235K Rise In Feb ADP Employment
(Kitco News)- Technicalselling in gold is dominating the marketplace Wednesday after private-payrollsprocessor ADP reported stronger-than-expected job growth in February.
ADP said that 235,000jobs were created in February. According to consensus forecasts, economistswere expecting to see job gains of 199,000. Not only did February employment beat expectations, but January's data were revised higher to 242,000 jobs, up from the initial estimate of 234,000.
Gold was already under pressure ahead of the data, and has only seen a modest increase in selling pressure in initial reaction. April gold futures last traded at $1,331.20an ounce, down 0.30%. The selling pressure comes after gold saw a more than 1%gain Tuesday because of growing concerns of a global trade war.
Although economists note that ADP is not a consistent predictor for Friday's official employment report, the strong-than-expected, data creates some expecations for an upside surprise in nonfarm payrolls.
By Neils ChristensenFor Kitco News
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