Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your experience. Save up to 40% More details

Gold futures soar over $1,200, following soft U.S. private sector data

Commodities Apr 01, 2015 01:09PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
Gold rose more than $24 an ounce on Wednesday, one of its largest gains this year -- Gold futures soared on Wednesday over $1,200 an ounce after the release of soft non-farming payroll figures, stoking fears of a bleaker than expected jobs outlook when the U.S. monthly employment report is released later this week.

On the Comex division of the New York Mercantile Exchange, gold for June delivery surged $24.30 or 2.05% to $1,207.50 a troy ounce. Earlier on Wednesday morning, gold was priced at 1,183.20, ahead of the issuance of the ADP National Employment Report.

Last month, the U.S. Private Sector added 189,000 jobs for the month of March far below economists' forecasts of the addition of 225,000, according to ADP. The subdued private sector job growth marked the lowest increase in seasonally-adjusted private employment nationwide since January, 2014.

The losses were especially pronounced among large companies, which produced some of its most disappointing figures in months. Employment at large companies with 500 or more workers decreased sharply in March, as the private sector added 19,000 jobs – down from 53,000 in February. Among companies with 1,000 workers or more the private sector added 12,000 jobs, compared with a spike of 43,000 jobs a month earlier.

"March job gains came in under 200,000 for the first time since January of last year," ADP president and CEO Carlos Rodriguez said in a statement. "The decline was centered in the largest companies, those with 1000 or more employees."

The report comes ahead of Friday's highly-anticipated U.S. jobs report from the Bureau of Labor Statistics (BLS), which will be released while commodity markets remain closed for Good Friday. Last month, the BLS reported that unemployment nationwide declined to 5.5%, a development that fueled concerns among metal traders that the Federal Reserve could institute an interest-rate hike before the end of the summer. As a result, gold plunged by more than $20 an ounce, experiencing one of its most precipitous daily losses on the year.

The precious metal struggles to compete with yield bearing assets in periods of rising interest rates.

The worse than expected private sector data coincided with a downtick in U.S. manufacturing activity. The Institute for Supply Management said on Wednesday that its purchasing managers' index fell to a 14-month low of 51.5 in March, down from 52.9 a month earlier. Economists expected the index to fall only slightly to 52.5. U.S. construction spending, meanwhile, unexpectedly fell in February, experiencing a steeper decline than economists anticipated.

Consequently, the U.S. Dollar Index, which measures the strength of the greenback versus a basket of six other major currencies, fell 0.38% to 98.32. EUR/USD rose 0.45% to 1.0781 in U.S. afternoon trading.

Gold becomes less expensive for foreign purchasers as the dollar depreciates.

On Tuesday, gold fell to $1,178.30 an ounce – its lowest level since Mar. 20.

Elsewhere, silver for May delivery gained 0.385 or 2.32% to trade at $16.98 a troy ounce, while copper for May delivery rose 0.007 or 0.27%, to trade at $2.747 a pound.

In China, the manufacturing purchasing index edged up to 50.1, up from 49.9 in February. Analysts had expected it to decrease to 49.7 for the month.

China is the world's largest consumer of copper and the second-largest purchaser of gold, behind India.

Gold futures soar over $1,200, following soft U.S. private sector data

Related Articles

Crude Oil Lower; Recession Worries Weigh
Crude Oil Lower; Recession Worries Weigh By - Jun 30, 2022

By Peter Nurse -- Oil prices weakened Thursday, heading for the first monthly decline this year as concerns over slowing economic growth have outweighed a further...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
Sign up with Email