Investors focus on July Nonfarm Payrolls and JOLTS data to gauge Fed rate hike odds, pressuring non-yielding assets like gold.
Gold (XAU/USD) trades sideways around $4,050 in European hours as markets await key US labor data later this week. The July Nonfarm Payrolls report is expected to show a modest hiring rebound to 65k from June’s 57k, with unemployment steady at 4.2%. Average hourly earnings are forecast to rise 0.3% month-on-month, matching prior gains.
Deutsche Bank economists see risks of a slight uptick in unemployment to 4.3% if labor force participation recovers. The data will shape expectations for Federal Reserve policy, with a 63.6% chance of a September rate hike priced in. Higher rates typically weigh on gold, a non-yielding asset.
Attention also turns to June’s JOLTS Job Openings at 14:00 GMT, which could provide further clues on labor market tightness and Fed policy direction.