Gold edges lower on strong employment, services data

Gold has edged lower in the Wednesday session, after posting sharp losses on Tuesday. In North American trade, the spot price for one ounce of gold is $1188.72, down 0.27% on the day. On the release front, ADP nonfarm payrolls jumped 230 thousand in September, crushing the estimate of 185 thousand. There was more positive news from the services sector, as ISM Non-Manufacturing PMI climbed to 61.6, above the forecast of 58.0 points. On Thursday, the U.S releases unemployment claims.

The U.S releases a host of employment numbers this week, kicking off with ADP nonfarm payrolls on Wednesday. The sparkling reading of 230 thousand marked the strongest increase in private sector jobs since March. On Thursday, we’ll get a look at unemployment claims, followed by three key indicators on Friday – wage growth, nonfarm payrolls and the unemployment rate. With the markets expecting a drop in wage growth and nonfarm payrolls, traders should be prepared for some volatility in gold prices.

Euro jumps as Italy revises budget plans

A tempest in a cappuccino cup or mama mia, here we go again?

ADP employment increased by 230,000 in September

XAU/USD Fundamentals

Wednesday (October 3)

• 8:15 ADP Nonfarm Employment Change. Estimate 185K. Actual 230K
• 9:45 US Final Services PMI. Estimate 52.9. Actual 53.5
• 10:00 US ISM Nonfarm Manufacturing PMI. Estimate 58.0. Actual 61.6
• 10:30 US Crude Oil Inventories. Estimate 1.1M
• 14:00 US FOMC Member Lael Brainard Speaks
• 14:15 US FOMC Member Loretta Mester Speaks
• 16:00 US Fed Chair Powell Speaks

Thursday (October 4)

• 8:30 US Unemployment Claims. Estimate 214K

*All release times are DST

*Key events are in bold

XAU/USD for Wednesday, October 3, 2018

XAU/USD October 3 at 12:20 DST

Open: 1191.82 High: 1192.59 Low: 1184.63 Close: 1188.72

XAU/USD Technical

XAU/USD edged higher the Asian session but gave up these gains in European trade. The pair has posted slight losses in North American trade

• 1170 is providing support
• 1204 is the next resistance line
• Current range: 1170 to 1204

Further levels in both directions:

• Below: 1170, 1146 and 1115
• Above: 1204, 1220, 1236 and 1261

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