Gold prices remained above the $4,000-per-ounce level, supported by recent gains. However, stronger-than-expected US employment figures could put fresh pressure on the precious metal.
According to ADP, US private-sector employers added 86,000 jobs in October, compared with 90,000 in September. The figure also exceeded market expectations of 67,000 new jobs, indicating continued strength in the labour market.
ADP Chief Economist Dr Nela Richardson said businesses across different sizes continued hiring. She also noted that job-switchers benefited from bonuses, overtime and higher working hours, alongside improved base salaries.
Despite the positive employment report, gold continued to trade higher. Spot gold reached $4,037.70 an ounce, gaining more than 2% during the session. Earlier, prices had moved above $4,000 following the US midterm election results, which shifted control of Congress to the Democratic Party.
Nevertheless, stronger employment data may influence the Federal Reserve’s interest-rate decisions. A resilient labour market could reduce the urgency for rate cuts, potentially strengthening the US dollar and pushing Treasury yields higher. Both developments generally create challenges for gold, which does not offer interest income.
Market analyst Artem Bakushev of Monaxa said the latest jobs figures showed that private-sector hiring remained stronger than expected. He suggested that firm employment conditions could keep monetary policy tighter for longer.
For now, gold faces competing forces. Stronger US economic data and a firmer dollar may limit further gains, while investor demand and broader economic uncertainty could continue supporting prices. Therefore, traders will closely monitor upcoming US economic reports and Federal Reserve signals.
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