The release of a strong ADP employment figure from the US has seen the expected reaction in Gold. The precious metal has taken a sharp leg lower, dropping almost half a percent within seconds of the release.
Gold is sensitive to the US economy as it’s denominated in US dollars. It has been experiencing strong selling of late as it appears increasingly likely the Federal reserve will move to raise interest rates from all-time lows at their next meeting. A strong NFP report this Friday, which today’s data suggests is more likely than previously thought, is likely to be widely viewed as rubber stamping Fed liftoff before year end.