Gold Prices ahead US job data
The greatest gain in private sector payrolls since July 2022 was revealed in the June ADP jobs report, which was beyond forecasts. ADP reports that the private sector added 497,000 jobs in the past month, which is more than double the estimate of 220,000 jobs made by economists surveyed by the Wall Street Journal. While employment in the sector that produces goods climbed by 124,000, the service sector added the newest jobs, 373,000.
The report also indicated that wages grew by approximately 6.4% compared to the previous year, slightly down from the 6.6% wage gains observed in May.
Economists surveyed by the Wall Street Journal predict that the Labor Department’s report will show a gain of 240,000 jobs added in June, a decrease from the exceptionally strong numbers in May, which stood at 339,000. Additionally, unemployment is expected to decrease from 3.7% in May to 3.6% last month.
The robust labor market and increasing wages have presented a challenge for the Federal Reserve. The strong employment figures suggest that the economy is robust enough to withstand additional rate hikes. The CME’s FedWatch tool currently indicates a 91.8% probability of a rate increase this month.
Gold prices are moving in range between $1892 to $1930 which testing the key support zone around $1900 few times already this week. In daily chart gold prices are moving in downtrend pressure from strong dollar and positive data this week as mentioned above. Resistance zone around $1928 is recommend to open sell position if US job data release greater than forecasting.