Symposium. US ADP Employment Change has been outperforming consensus for the past four months. Weak labor demand from US private payrolls could allow Fed policymakers to discuss rate cuts sooner rather than later.Gold price consolidates in a narrow range above $1,930.00 as investors await the private payroll data for August, which will provide more details about the current labor market status.
August labor market data carries significant importance as Fed Chair Jerome Powell conveyed at the Jackson Hole Symposium that inflation has become more responsive to the labor market. Softening of key US job data indicates that the labor market is losing its resilience and elevates hope for the Fed’s soft landing.
In addition to US Job Openings data, Consumer Confidence reported by the US Conference Board dropped sharply to 106.1 as fears of persistent inflation renewed. In this data-packed week, investors will shift their focus toward the Nonfarm Payrolls data for August, which will provide an in-depth status of labor market conditions.
Meanwhile, 10-year US Treasury yields dropped to near 4.15%, indicating higher bets for a soft landing by the Fed.Gold price trades back and forth in a narrow range above $1,930.00 after a rally inspired by soft job openings data. After a stellar rally, the precious metal reaches near the upper portion of the Rising Channel chart pattern formed on a small time frame.