XAUUSD

This week will be a true “Fed reading” week for Gold. The upcoming ADP Non-Farm Employment and JOLTS Job Openings data will be crucial for Gold, one of the most sensitive assets to interest rates. A potential slowdown in the US labor market (if the ADP and JOLTS data come in below expectations) could strengthen expectations that the Fed might end interest rate hikes and consider cuts. This situation could lead to weakness in the Dollar and bond yields, creating a strong upward momentum for Gold. However, if the data comes in strong, expectations for interest rate hikes could revive, which could put pressure on Gold. Overall, a data-driven and volatile week is expected.