ADP private payrolls rose by 44K in July, missing forecasts and signaling a sharp hiring slowdown in the US labor market.
Gold prices surged over 4% to $4,247 per troy ounce on Wednesday, driven by weaker-than-expected US labor market data. ADP private payrolls increased by just 44K in July, falling short of the 70K forecast and down from 98K in June. The ISM Services PMI also disappointed, with its employment sub-index plunging to 47.4 from 51.2.
The data reinforced concerns about a broader hiring slowdown, extending beyond a single survey. The US Dollar Index (DXY) edged lower by 0.16%, trading near 99.70, as geopolitical tensions eased with US-Iran peace talks resuming. Silver followed gold’s rally, climbing nearly 5% toward $62.20.
Markets reacted to the labor market weakness, with safe-haven assets like gold and silver gaining ground. The dollar showed limited movement, remaining range-bound for the fourth consecutive day.