Gold gains amid weaker US data

With a three-day winning streak near $1,942 and almost 1.50% daily gains. The US reported weaker labour market figures, with ADP Employment Change increasing by 177,000 employed people, lower than expected.

Jerome Powell emphasized restrictive monetary policy until cooling trends show a cooling trend. The US bond yields decreased to 4.88%, 4.26%, and 4.11%, with around 0.40% daily losses. The XAU/USD advance is attributed to the decrease in Treasury bond yields, which are often seen as the opportunity cost of holding gold.

Fed could leave interest rate unchanged in the September 20 monetary policy meeting, while the odds of a hike in November slightly decreased to 40%. Swaps markets are discounting sooner rate cuts in June 2024, applying downside pressure to US bond yields.