Gold Price Forecast: XAU/USD recovers some lost ground above $2,050, US ADP report eyed
- Gold price recovers its losses around $2,060, up 0.14% for the day.
- The US ISM Manufacturing PMI came in at 47.4 vs. 46.7 prior, better than the expectation of 47.1.
- Market players will monitor the US ADP Employment Change and weekly Initial Jobless Claims on Thursday.
Gold price (XAU/USD) bounces off the multi-day lows near $2030 per ounce and hovers around $2,042 during the early Asian session on Thursday. The stronger US Dollar (USD) and higher US Treasury bond yields weigh on the yellow metal.
Meanwhile, the US Dollar Index (DXY), a measure of the value of the USD against a weighted basket of currencies used by US trade partners, surges to its highest in three weeks around 102.42. The Treasury yields edge higher, with the 10-year yield standing at 3.92%.
The minutes of the FOMC meeting were not dovish like the press conference at its December meeting, which lift the US Dollar (USD) broadly. The participants emphasized the need to maintain a cautious and data-driven approach, and they added that policy should remain restricted for some time.
The Institute for Supply Management (ISM) revealed on Wednesday that US Manufacturing PMI contracted further in December, even though the figure showed improvement in production and factory employment. The Manufacturing PMI rose to 47.4 from 46.7 in the previous reading, above the market consensus of 47.1.
Later on Thursday, the US ADP Employment Change and weekly Initial Jobless Claims will be released. Traders will take more clues from the US employment data on Friday, including Nonfarm Payrolls, Unemployment Rate, and Average Hourly Earnings, due on Friday.