Gold Reaches $4,026 as ADP Reports 98K September Jobs, Missing Forecasts

Gold traded higher on Wednesday after ADP reported 98,000 jobs were added in September, falling short of the 105,000 consensus forecast. The weaker employment data supported the precious metal, with spot gold reaching $4,026.83 per ounce, up 0.48% on the day. The miss in job creation numbers signaled continued labor market softness, according to ADP's chief economist Dr. Nela Richardson, who noted both supply and demand factors are slowing hiring. The report showed uneven sector performance, with financial activities and information industries gaining while leisure and hospitality posted a sixth consecutive month of weak hiring.

ADP Reports 98,000 Jobs Added in September Below Forecasts

ADP announced on Wednesday that 98,000 jobs were created in September, missing the consensus forecast of 105,000 jobs. May's figure remained unrevised at 122,000 net jobs from the initial reading.

"The pace of hiring is telling a story of both supply and demand," said Dr. Nela Richardson, chief economist at ADP. "We know it's taking people longer to find work, but there also are signs of labor supply constraints in certain industries. For now, the overall effect is a slowdown in job creation."

Gold Reaches $4,026.83 Per Ounce on Weaker Jobs Data

The gold market continued trading near session highs following the employment data release. Spot gold last traded at $4,026.83 per ounce, up 0.48% on the day.

Petros Pantzari, Chief Dealer at Monaxa, told Kitco News the ADP print is soft-dollar and gold-supportive. "A cooler jobs print tells traders the U.S. labour market is losing momentum, which can pull Treasury yields lower and strengthen expectations that the Fed may need to lean more dovish," he said. "That usually pressures the U.S. dollar, while gold gets a bid because lower yields reduce the cost of holding non-yielding assets. The key caveat: if markets read this as growth fear rather than just Fed-relief, the dollar may find some safe-haven support --- but the clean immediate reaction is dollar down, gold up."

Financial Activities Gain While Leisure Sector Shows Sixth Month of Weakness

The ADP report noted job creation was uneven in June. Financial activities and information were among the sectors that gained jobs. Leisure and hospitality delivered a sixth month of weak hiring, according to the report.

FAQ

How many jobs did ADP report were added in September? ADP reported 98,000 jobs were added in September, falling short of the 105,000 consensus forecast.

What was the gold price after the ADP jobs report? Spot gold traded at $4,026.83 per ounce, up 0.48% on the day following the weaker-than-expected employment data.

Which sectors showed weak hiring in the ADP report? Leisure and hospitality delivered a sixth consecutive month of weak hiring, while financial activities and information industries were among the job gainers.