Gold spikes higher after ADP data, but oil and silver head lower
Gold spiked higher today after a report from Automatic Data Processing (ADP) showed the U.S. private sector added only 38,000 jobs in May, well below expectations of a gain of nearly 200,000. The weak job report only added to pressure on the US dollar after the Chicago purchasing managers index (PMI) surprisingly slipped from 67.6 to 56.6 last month, reflecting a decline in manufacturing activity in one of the key industrial areas in the US.
Traders were buying the yellow metal while shunning the US dollar, which is widely seen as an alternative asset to gold. Gold hit nearly $1550/ounce, and it currently sitting $11/ounce higher on the day at US$1,545.
Platinum also reacted to the weaker dollar, surging to US$1,833/oz, but silver moved in the opposite direction, dropping to US$37.79/oz.
Crude oil futures tracked losses in US equity markets, which were hit by bearish macroeconomic news.
Oil prices were partially supported by a decline in the US dollar, which made the dollar-denominated crude cheaper for holders of other currencies, lifting demand.
US light, sweet crude for July delivery, which is currently the most actively traded contract on the New York Mercantile Exchange (NYMEX), fell to 100.29/barrel, a drop of 2.34%
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