Gold Price Forecast: XAU/USD tumbles to near $1,900 as US labor market conditions tighten
- Gold price has faced immense selling pressure as US Employment conditions have tightened further.
- The US labor market has been flooded with fresh 497K fresh talent in June, higher than the expectations of 228K and the former release of 278K.
- S&P is expected to open on a bearish note as investors have turned extremely cautious ahead of the quarterly reason season.
Gold price (XAU/USD) has tumbled to near the round-level support of $1,900.00 in the early New York session. The precious metal faced an intense sell-off as the labor market conditions in the United States tightened significantly.
The US Automatic Data Processing (ADP) agency has reported that payroll figures doubled in June vs. expectations. In June, the US labor market has been flooded with fresh 497K fresh talent, higher than the expectations of 228K and the former release of 278K.
Contrary to the US ADP Employment report, the number of individuals filing for initial jobless claims has jumped to 248K for the week ending June 30 vs. expectations of 245K and the former release of 236K.
Meanwhile, S&P is expected to open on a bearish note as investors have turned extremely cautious ahead of quarterly reason season and tight labor market conditions. The higher addition of Employment numbers is going to infuse confidence among Federal Reserve (Fed) policymakers for raising interest rates further.
The US Dollar Index (DXY) has rebounded after dropping to near 103.00 as hopes of further interest rate hikes from the Fed have solidified. The yields offered on 10-year US Treasury bonds have jumped to near 4.04%.
Gold technical analysis
Gold price has faced severe selling pressure while attempting to surpass the 100-period Exponential Moving Average (EMA) plotted around $1,929.00. The precious metal failed to sustain above the downward-sloping trendline plotted from May 03 high at $2,079.76.
The Relative Strength Index (RSI) (14) is oscillating in the 40.00-60.00. Bearish momentum would trigger if it drops below 60.00.
Gold four-hour chart
