Sound the alarms – today is the day to take action and add gold to your portfolio. A very attractive window to buy has opened on the back of new U.S. employment data and created a prime opportunity for investors to increase their gold holdings.
Today’s desirable gold prices come as a result of a surprisingly strong jobs update. The June report, released yesterday (Thursday) by the payroll processor ADP, showed that private companies created 497,000 jobs in June – that’s a significant increase on the 267,000 jobs created in May. Analysts had expected the figure to be less than half of that, with Dow Jones projections calling for 222,000 new jobs to be added.
The largest rise in new roles for more than 12 months, the jobs were mainly created by the leisure and hospitality, construction, trade, transportation, and utilities sectors. Many of the jobs were created by smaller firms with less than 50 employees. Some industries, including financial services and the manufacturing sector, shed jobs the data confirms.
ADP’s chief economist, Nela Richardson says the leap is surprising but cautioned that this figure may well represent the peak and wage growth isn’t growing in symmetry – meaning future reports could reflect a much tighter employment market. “Consumer-facing service industries had a strong June, aligning to push job creation higher than expected,” she said. “But wage growth continues to ebb in these same industries, and hiring likely is cresting after a late-cycle surge.”
The increase in new roles created has caught many by surprise, giving the Federal Reserve’s efforts to cool the economy over the last 12 months. As a result of the resilient employment data, the U.S. dollar received a substantial boost along with the U.S. Treasury Yields. This has put pressure on gold prices, with the yellow metal losing some ground during Thursday trading.
Given gold’s unassailable upward trajectory, the age-old advice to buy the dip is more relevant than ever today. Despite prices dipping, they remain above the key £1,491 ($1,900) level. The upshot is today’s prices are incredibly attractive for those looking to get in before we see a new all-time high set.
Don’t wait for the next rollercoaster rise to hit. Buy gold now.
