Gold Rises Slightly, Awaiting US Data
Gold prices (XAU/USD) moved slightly above $3,950 per ounce in the Asian session, supported by inflows into safe-haven assets amid economic concerns stemming from the prolonged US government shutdown and geopolitical uncertainty. The budget impasse in Washington is expected to be the longest on record, leading to a return to cautious sentiment.
However, gold's upside remains limited. The strengthening US dollar and fading hopes for a Fed rate cut this year have prompted profit-taking. A stronger dollar makes gold relatively more expensive for foreign buyers, dampening physical demand and investment appetite for this non-yielding metal.
Market focus now turns to the US private employment (ADP) data for October. Consensus estimates an increase of around 25,000 jobs, reversing the 32,000 decline in the previous release. A stronger reading could potentially strengthen the US dollar further, curbing gold's rally; conversely, a soft reading could open up room for a rebound.
That same day, the market also awaits the US ISM Services PMI for indicators of the strength of the service sector. The combination of ADP and PMI will shape the latest expectations regarding the direction of the Fed's policy—determining whether gold can hold above $3,950 or be dragged down again by the dominant dollar. (az)
Source: Newsmaker.id
