Gold price drops as U.S. private sector payroll surprises with more jobs in June – .

Gold price drops as U.S. private sector payroll surprises with more jobs in June – .

(Kitco News) Gold edged down after private payroll processor ADP reported a better-than-expected increase in jobs this month.

The private wage bill rose by 692,000 in June, ADP said on Wednesday. Market forecast was for an advance of 600,000. Data for May has been revised down to an increase of 886,000 jobs.

In an initial reaction to the data, gold fell, with August Comex gold futures trading last at $ 1,756.60, down 0.40% on the day .

Looking at the components of the report, most of the job increases were reported in the service sector, which added 624,000 jobs. These were distributed fairly evenly between large, medium and small companies.

Large companies employing 500 or more people saw 240,000 new jobs created in June. Mid-sized businesses employing up to 500 people reported an increase of 236,000. And small businesses employing up to 50 people reported creating 215,000 jobs.

The goods-producing sector saw a smaller increase of 68,000 jobs.

“The labor market recovery remains robust, with June ending a strong second quarter of employment growth,” said ADP chief economist Nela Richardson. “While the payroll is still nearly 7 million lower than pre-COVID19 levels, job gains have totaled around 3 million since the start of 2021. Service providers, the hardest hit sector, continue to do the heavy lifting, with leisure and hospitality showing the biggest gain as businesses begin to reopen at full capacity across the country. “

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