Gold price (XAU/USD) finds buying interest on downbeat United States labor market data. The US Automatic Data Processing (ADP) has reported a sharp decline in the hiring of private payrolls for September. US employers picked 89k fresh talent from the market against expectations of 153k and August’s reading of 177k. This indicates a soft labor demand that will set a neutral undertone for the Federal Reserve’s (Fed) November monetary policy. The broader outlook for the precious metal may improve as Fed policymakers could turn neutral ahead.
The US Dollar corrects to near 106.60 from its 11-month high of 107.20 on softer-than-anticipated Employment Change data. The 10-year US Treasury yields have surrendered some gains and have eased to near 4.81%. Meanwhile, investors will also focus on the US ISM Services PMI, which will deliver guidance on the demand outlook. Gold price struggles for a direction, trading near $1,820.00 after an intense sell-off as investors shift their focus to the US labor market data for further guidance. The precious metal remains in the bearish territory and more downside is in the pipeline as the 50 and 200-day Exponential Moving Averages (EMAs) are on the verge of a Death Cross. The yellow metal is expected to find a cushion near the crucial support around $1,800.00.
