Gold price struggling to find momentum even as ADP employment data miss expectations, 517K jobs created in March

 New York (Mar 31)  Gold prices continue to struggle below $1,700 even as the U.S. economy created fewer private-sector jobs than expected last month, according to according to private-payrolls processor ADP.

Wednesday, ADP said that 517,000 jobs were created in March; however, according to consensus forecasts, economists were expecting to see a reading of around 552,000 jobs.

Although the latest labor market data missed expectations, the report noted that this was the highest pace of job growth in six months.

The gold market is seeing only a modest reaction to the latest labor market data as it pushing into positive territory but remain below critical support. June gold futures last traded at $1,686.10 an ounce, roughly unchanged on the day.

Although the labor market continues to improve, economists note that there is still a long recovery ahead to get back to pre-pandemic levels. The Federal Reserve has also noted that it will maintain its ultra-accomodative monetary policy as weakness persists in the labor market. With the U.S. central bank not expecting to raise interest rates anytime soon, many market analysts remain bullish on gold in the long-term.

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