XAU/USD gains on softer USD but faces pressure from elevated Fed rate hike expectations ahead of key US jobs data.
Gold prices climbed during Thursday’s Asian session, supported by a weaker US Dollar following softer-than-expected US economic data. The ADP report showed private sector employment rose by 98K in June, below the 113K estimate and down from May’s 122K. The ISM Manufacturing PMI also eased to 53.3, while the Prices Paid Index fell sharply to 73 from 82.1.
The data tempered near-term inflation concerns, reducing USD strength and aiding gold’s upward momentum. However, Fed rate hike expectations remain elevated, with traders pricing in a 64% chance of a September hike and an 85% probability by year-end, capping bullion’s gains.
Market focus now shifts to Friday’s US nonfarm payrolls report, which could further influence Fed policy bets and USD direction.