Gold maintains downtrend ahead of US employment data

Gold price is wavering within the $1,723.03-1,727.20 zone as investors’ attention shifts to the awaited US Employment Change data.

The positive US JOLTS Job Openings data granted the US Dollar Index further strength. The said data landed at 11.239M, higher than the expected 10.475M, surpassing prior reading of 11.04M. Gold price is maintaining dull performance after a negative downside move on Tuesday.

The precious metal is oscillating in a narrow range of $1,723.03-1,727.20 in the Asian session. Gold has not quitted Monday’s low and could even suffer from a steep fall after violating the critical support of $1,720.00.

Gold’s severe aching commenced following the US dollar index’s surge on better-than-expected US job openings data and hawkish comments by New York Fed’s John Williams. Fed’s Williams believes inflation rate scaling lower to 2.5-3% next year and has raised targets for interest rates above 3.5%.

Going forward, investors’ entire focus will remain on US Automatic Data Processing (ADP) Employment data, expected to jump to 200k, against the prior release of 128k.