Gold News

Wall Street spurns upbeat employment

New York trading was weaker yesterday (October 3rd) as investors disregarded encouraging employment data and held off buying shares.

With semiconductor and transport stocks leading the downward drift, the Dow Jones Industrial Average fell 0.6 per cent, alongside a larger 0.7 per cent decrease for the Nasdaq Composite.

The summer's financial volatility has accustomed market-watchers to Wall Street sluggishness, but the most recent slip in shares comes at a surprising time - private sector jobs were claimed to have risen by 58,000 over September.

Figures from the ADP payroll services firm were indeed a positive indication of the underlying strength of the US economy, but investors spurned the upbeat employment news and remained unwilling to rally.

Investors will continue to watch the market carefully, with the numerous traders looking to buy gold still concerned about the impact of general employment news on the price of the precious metal.

Investor focus remains on the September payroll report, due tomorrow, which includes new private sector and government jobs. Economists expect growth of about 115,000. That would represent a rebound from the 4,000 decline in August.

The price of gold has indeed fallen away slightly this week from the recently registered 27-year highs, but many experts see the current phase as one of consolidation before a renewed bull run.

Market focus remains on further payroll reports tomorrow, which will include a tally of new private sector and government jobs estimated to be set for around 115,000, a marked improvement on August's 4,000 job decline.

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