Gold prices fell during the midday trading session in the US on Thursday following the better-than-expected ADP employment report, which showed double the expected increase in job numbers. The report pushed the US dollar index up from its overnight low and also raised US bond yields. In the end, August gold dropped by $10.50 to $1,916.
The June ADP report in the US showed a job increase of 497,000, surpassing market expectations of a 220,000 increase. This data supports the hawkish stance on US monetary policy, as those who want the Federal Reserve to continue raising interest rates. The US employment report from the Department of Labor is now due on Friday morning. Non-farm payrolls are forecasted to increase by 240,000, compared to a 339,000 increase in the May report. However, the strong ADP job numbers today lead many to believe that the Friday labor report will also be robust.
The June ADP report in the US showed a job increase of 497,000, surpassing market expectations of a 220,000 increase. This data supports the hawkish stance on US monetary policy, as those who want the Federal Reserve to continue raising interest rates. The US employment report from the Department of Labor is now due on Friday morning. Non-farm payrolls are forecasted to increase by 240,000, compared to a 339,000 increase in the May report. However, the strong ADP job numbers today lead many to believe that the Friday labor report will also be robust.
