Gold Price Forecast: XAU/USD holds steady near $3,300 as traders brace for US-China trade talks
Gold price trades flat around $3,310 in Monday’s early Asian session.
US NFP increased by 139,000 in May, more than expected; Unemployment Rate held steady at 4.2%.
The US-China trade talks will be the highlight later on Monday.
The Gold price (XAU/USD ) trades on a flat note near $3,310 during the early Asian session on Monday. The rebound in the US Dollar (USD) could weigh on the precious metal. However, uncertainty from US President Donald Trump's tariff policies might help limit the Gold’s losses.
Stronger-than-expected US jobs growth in May lifts the Greenback and undermine the USD-denominated commodity price. Nonfarm Payrolls (NFP) in the United States (US) climbed by 139,000 in May compared to the 147,000 increase (revised from 177,000) in April, the US Bureau of Labor Statistics (BLS) revealed on Friday. This reading came in above the market consensus of 130,000.
The US Unemployment Rate held steady at 4.2% in May, while the Average Hourly Earnings remained unchanged at 3.9% in the same reported period. Both readings came in stronger than the market expectation.
Following the upbeat US job report, Federal Fund Futures pointed to a larger chance that the US Federal Reserve (Fed) may keep its benchmark interest rate steady at its next two monetary policy meetings.
Investors will closely monitor trade talks between the US and China later on Monday, as Trump said that the world’s two largest economies will hold trade talks in London. Any signs of an escalating trade war between the US and China might boost the safe-haven flows, benefiting the yellow metal.
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