(Kitco News) – Gold prices remained on the defensive after the monthly ADP report Wednesday showed that U.S. firms created 227,000 new private-sector jobs during October.
Consensus estimates compiled by news organizations had called for around 178,000 to 189,000 new private-sector jobs to be created. The September tally was revised to 218,000 from the previously reported 230,000.
As of 8:26 a.m. EDT, spot gold was $7.50 lower to $1,215.10 an ounce. Three minutes prior to the ADP report, the metal had been at $1,216.40.
There were 189,000 new jobs in the service sector and 38,000 in the goods-producing sector.
The report showed that the biggest gains came in the category for trade, transportation and utilities, with 61,000 new jobs. The leisure and hospitality industry created 40,000 jobs.
Large companies, employing 500 or more workers, added 102,000 jobs. Mid-sized companies, defined as those with between 50 and 499 employees, created 96,000 new jobs. Small companies with less than 50 people added 29,000 positions.
Traders closely watch the ADP data as a precursor to the U.S. Labor Department’s monthly jobs report that normally comes out in the same week. The government’s report is due out on Friday.
By Allen Sykora
For Kitco News