Gold Price Forecast: Gold Standstill At $1,810 Ahead Of US NFP Figures On Friday

Gold prices closed at $1815.55 after reaching a high of $1822.60 and a low of $1810.65. The XAU/USD remained flat throughout the trading session as investors remained cautious about making solid bets. It looks like traders are preparing themselves for the key US jobs data that could influence the tapering strategy of the Federal Reserve. The gold price forecast remains bullish above the long-held support level of 1,809 level.

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The Weaker Dollar Continues To Underpin Gold Prices

The US Dollar Index, which measures the greenback’s value against a basket of six major currencies, continued its bearish momentum. It dropped for the 4th consecutive session on Wednesday. Furthermore, the DXY fell to 92.3 level, its one-month lowest level, but managed to recover some of its losses and closed its day at 92.5 level. 

The bearish momentum of DXY should have made gold prices move higher, but the precious metal also remained under pressure throughout the session and remained flat. Moreover, the US Treasury Yields on a 10-year note also fell on Wednesday. It settled down at 1.29% as the significant jobs data from the US fell short of expectations. 

Automatic Data Processing, Inc. Employment Report In Play

The ADP National Employment Report showed that US private employers hired far fewer workers than anticipated in August. However, an uptick in manufacturing activity in the United States helped the greenback gather strength.

The fluctuations in the greenback influence gold prices as it makes bullion cheaper or more expensive for those holding other currencies. The mixed macroeconomic data from the United States left gold with no choice but to remain flat throughout Wednesday’s trading session. On the data front, at 17:15 GMT, the ADP Non-Farm Employment Change dropped in August to 374K against the forecasted 640K. 

Quick Economic Event Review

At 18:45 GMT, the final Manufacturing PMI for August remained flat with expectations of 61.1. At 19:00 GMT, the ISM Manufacturing PMI in August surged to 59.9 against the predicted 58.5 and supported the US dollar that weighed on the yellow metal. Construction spending remained unchanged from the expected 0.3%. 

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