Gold turns choppy ahead of labor market and Services PMI data

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Gold price (XAU/USD) remains directionless as investors shift focus to the United States labor market data, which will set an undertone for the Federa

Job vacancies by US employers were upbeat in August, portraying strong labor demand.labor market data, which will set an undertone for the Federal Reserve’s November monetary policy. The broader outlook for the precious metal is bearish as Fed policymakers continue to favor further policy tightening due to a resilient economic outlook.faces barricades while extending its rally above 107.20 despite upbeat Job Openings data.

The precious metal attempted a recovery near $1,820.00 on Tuesday but failed to capitalize on the same due to hawkish interest rate guidance from Federal Reserve policymakers and upbeat JOLTS Job Opening data. On Monday, Fed Mester said that one more interest rate hike is well-needed this year and that they are required to remain high for a longer period.

The US Dollar faces some selling pressure after refreshing its 11-month high near 107.20 as investors turned cautious about labor market data, which will set the undertone for the interest rate outlook.

 

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