Gold price (XAU/USD) extended rally as US Automatic Data Processing (ADP) reported that Employment Change for August missed estimates. The US private sector recorded fresh additions of 177K payrolls, lower than estimates of 195K and July’s print of 324K. Four-month outperformance streak by US private employment comes to a halt as firms’ hiring slows due to poor economic outlook.
The precious metal capitalized on softer job openings data on Tuesday, which accelerated hopes of an unchanged interest rate decision to be taken at the September monetary policy meeting by the Federal Reserve (Fed). Employees’ declining confidence in the labor market gave comfort to Fed policymakers for keeping current interest rates at 5.25-5.50%.
