Gold Halts Longest Rally in Six Weeks on Steady U.S. Employment
Gold fell, halting its longest rally in six weeks, after a private report showed the U.S. job market remained resilient, curbing demand for a haven.
Companies in the U.S. added workers to payrolls at a steady pace in July, according to a ADP Research Institute report Wednesday. That indicates the labor market was holding up in spite of broader growth numbers that show the economy may be slowing.
Gold has rallied 29 percent this year on expectations that the Federal Reserve will be slow to boost borrowing costs amid risks to global growth. The ADP report may presage jobs data to be released Friday by the government, which could affect the Fed’s decision on when to raise interest rates.
“The jobs market is the one area that has continued to perform well,” Phil Streible, a senior market strategist at RJO Futures in Chicago, said in a telephone interview. “Today’s data is like a smoke signal before Friday comes around. Gold prices may back off.”
Gold futures for December delivery slipped 0.6 percent to settle at $1,364.70 an ounce at 1:50 p.m. on the Comex in New York. Through Tuesday, prices gained for six straight sessions in its longest rally since June 16.
- A gauge of 14 senior global gold producers tracked by Bloomberg Intelligence fell from the highest since 2013. Kinross Gold Corp., Newmont Mining Corp. and Yamana Gold Inc. led declines.
- Silver futures also fell on the Comex, while palladium and platinum declined on the New York Mercantile Exchange.