XAUUSD 3/8 : Gold recovers slowly waiting for PMI news
Updated
XAUUSD Aug 3 : Gold prices slightly higher in Asia on Thursday and partially reversed the previous day's slide to the $1933-$1932 region, or three-week low. XAU/USD is currently trading with a slight positive bias around the $1937-$1938 region, up nearly 0.20% on the day, although any significant uptrend still seems elusive.
The ADP National Employment Report showed on Wednesday that private sector employers in the United States (US) added 324,000 jobs in July compared with 189,000 predicted. This demonstrates the continued resilience of the labor market and will insulate the economy from recession, allowing the Fed to maintain its hawkish stance.
Note
The dollar received support from the wage data sheet much stronger than expected published by the ADP. The reading follows data earlier this week for some signs of US construction and manufacturing recovery.The data finally trumpeted that the Federal Reserve would have enough economic room to raise interest rates further and keep its attention there - a play that bodes well for gold and metals markets.
The increased opportunity cost of holding gold is high, and also shows that investors prefer the dollar as a safe-haven to gold.
Note
Market participants now look forward to the US economic report - including the usual weekly Initial Jobless Claims release, ISM services PMI and Factory Orders later in the session. early in North America. This, coupled with US bond yields, could influence the USD price dynamics and provide some impetus for Gold prices.Note
The US ADP Employment Change for July surpassed market forecasts of 189k to 324k while previous readings were revised down to 455k.Amid these plays, the US 10-year Treasury yields rose to their highest levels since November 2022 while the US Dollar Index (DXY) also rose to a three-week high, from That puts pressure on the Gold Price. It should be noted that Wall Street's benchmarks also closed in the red and expressed risk aversion while favoring the XAU/USD bears.
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