- The XAU/USD pair remains in an intraday consolidation near $1,815 after the US data.
- The US ADP employment report shows a rise in private payrolls above expectations.
- Dollar maintains recent gains, US yields recede.
Gold price continued to move near $1,815/oz after the release of US employment data that beat expectations. XAU/USD fell towards $1,810 and managed to stay above it. The yellow metal is trading $35 below its level a day ago, hit by testimony from Fed Chairman Powell.
Data continues to point to a tight US job market
Automatic Data Processing (ADP) reported on Tuesday that private sector employment increased by 242,000 in February, above the 200,000 expected. The January figures were revised up from 106,000 to 119,000. ADP’s chief economist said he is seeing strong hiring, but cautioned that wage growth “remains quite high.”
The figures continue to show a tense labor market that keeps the doors open to further action by the Federal Reserve. The ADP report contained no major surprises, so it had a moderate impact on the markets. The round of labor market data will continue on Thursday with jobless claims and on Friday with non-farm payrolls.
On Wednesday, Fed Chairman Jerome Powell will testify before the US Congress. On Tuesday, it sent XAU/USD lower by opening the door for a 50 basis point rate hike at the March FOMC meeting.
The dollar rose modestly after the report, while US yields eased. Despite the recovery in Treasury yields, the XAU/USD pair was stable. The strong dollar and risk aversion are limiting gains while at the same time leaving metals vulnerable to further losses.
If XAU/USD breaks below $1,808 (daily low) in the next few hours, a test of the critical $1,800 support zone seems likely. To the upside, it needs to firmly consolidate above $1,815 to gain some support.
technical levels
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
