Gold prices moved higher on Wednesday as the dollar moved lower. This followed a softer than expected ADP private payroll report. Despite the weak private jobs number that comes ahead of Friday’s US government employment report, US yields moved higher, rebounding slightly from the all-time lows that were hit on Tuesday.
Gold prices rose 0.87% on Wednesday and are now up 3% for the week after rising 3.5% during the prior week. Support is seen near the 10-day moving average at $1,962. Short-term momentum is positive to neutral as the fast stochastic moved sideways and is poised to generate a crossover sell signal. Medium-term momentum remains positive as the MACD (moving average convergence divergence) histogram is printing in the black with an upward sloping trajectory which points to higher prices.
US Private Payrolls Edge Higher
US private payrolls increasing by just 167,000, according to a report released on Wednesday by ADP and Macro-Economic Advisors. This was below the 1 million expected. Businesses with between 50 and 499 employees reported an outright decline of 25,000. Big business brought back 129,000 jobs while firms with fewer than 50 workers added just 63,000. All but 1,000 of the jobs came from the services sector, as professional and business services led with 58,000. Education and health services added 46,000 and trade, transportation and utilities contributed 41,000. On the goods-producing side, manufacturing added 10,000, but construction lost 8,000 and mining and natural resources fell by 1,000.