Precious Metals Higher After ADP Report Shows Job Losses in November

In November, U.S. companies experienced a significant decline in payrolls, shedding 32,000 jobs according to ADP data, marking the largest drop since early 2023. This unexpected downturn contrasts sharply with economists' predictions of a 10,000 job increase, raising concerns about the labor market's stability.

In September, U.S. industrial production increased by 0.1%, recovering from a 0.3% decline in August, according to the Federal Reserve. This modest growth indicates a slight rebound in manufacturing activity, which is crucial for the overall economy.

Maersk has reported an increase in demand from India, indicating that its shipping service connecting India and North America is maintaining consistent weekly departures. This development comes amid growing hopes for a potential trade deal between the U.S. and India.

The dollar has weakened against a basket of currencies and is projected to decline further in the first half of 2026, albeit at a more modest pace than in the current year, according to J.P. Morgan. This trend reflects ongoing volatility in the currency markets, influenced by various economic indicators and investor sentiment.

US private payrolls unexpectedly declined by 32,000 jobs in November, following an upwardly revised increase of 47,000 jobs in October, according to the ADP employment report. This decline contrasts with economists' expectations of a 10,000 job increase for November, highlighting a potential slowdown in the job market.

U.S. stocks opened lower on December 2, 2025, following a disappointing report from ADP indicating a loss of 32,000 jobs in November and concerns stemming from Microsoft's recent AI report. This negative sentiment reflects broader anxieties in the market regarding employment and technology sector performance.

Chief Economist Philip Lane of the European Central Bank (ECB) indicated that a 10% increase in the euro's exchange rate could significantly lower inflation over the next three years, according to the central bank's modeling. This projection aligns with the ECB's ongoing efforts to stabilize the economy amidst fluctuating inflation rates.

U.S. import prices remained unchanged in September, as reported by the Labor Department, with increases in nonfuel import prices balancing out a decline in fuel import prices. This stability in import prices reflects ongoing economic conditions and consumer demand patterns.