Gold stabilized below $2,300 ahead of Fed decision

Earlier on Wednesday, the XAU/USD Index was trading with gains of 0.84% at $2,304 amid falling US Treasury yields and a weak US Dollar. At the time of writing, it trading at $2299.20 per ounce.

Manufacturing activity expanded in April, according to S&P Global. However, the Institute for Supply Management (ISM) revealed a contraction for the same period in the economy of the United States (US), which could put pressure on the US Fed, which has lately adopted a more restrictive stance regarding the latest media appearances.

Gold prices rallied 0.84% as they bounced back from a two-week low, buoyed by mixed US economic data. US manufacturing reports from S&P Global and ISM were mixed, complicating the economic outlook. Jobs data from the US was mixed as ADP reported rising employment, while job openings experienced a sharp decline.

Gold price reclaimed the $2,300 milestone on Wednesday after dropping to a two-week low of $2,281, sponsored by a rise in the Employment Cost Index (ECI) in April. However, buyers emerged following the release of two reports showing mixed readings on business activity in the manufacturing sector and in the labor market.

Further data from Automatic Data Processing (ADP) revealed that the economy added more people to the workforce. However, US job openings missed estimates and dropped to their lowest level in three years, an indication that the labor market is cooling.