The price of gold in New York trading in the early afternoon was $1,401.80 per troy-ounce, up from Tuesday’s closing of $1,397.20. Gold has been steadily creeping higher since May 20, when it closed at $1,385.40, and finally broke through the $1,400 barrier today after the disappointing ADP jobs report revealed private-sector job growth was still weak.
According to the CME investment group, the job market and the slow growth of the dollar were the culprits for the beating the market took today.
“Many traders are pointing to the negative tone of this morning's U.S. economic data,” CME said in a statement, “particularly from the weaker-than-expected results of private surveys of job creation and service-sector sentiment, as the key factor for gold's rebound from early losses.” The statement noted that some viewed the sluggish dollar as beneficial to the gold market, and that this week's U.S. economic data may have dampened market expectations for the Federal Reserve to start tapering asset purchases during the near future.
Maya covers the U.N., Europe, and the Middle East for IBTimes. She joined the company in July 2012 after having previously worked with DNAinfo.com and Gawker.