September 2, 2021

Why Is Gold ‘Slow’ Despite Signs NFP Will Be Weak?

 The golden yellow metal remained stable as investor levels assessed market conditions cautiously ahead of the release of the NFP jobs report on Friday.

Although the U.S. ADP employment data showed a weaker -than -expected reading, gold trading gave little reaction by rising to $ 1,820 an ounce.

However, in today’s Asian session the movement of gold slowed back to $ 1,813 per ounce, signaling investors continue to be cautious in placing positions before the NFP data is released.

Gold futures, meanwhile, traded slightly lower at around $ 1,815 an ounce.

Tomorrow's NFP readings are expected to slow, especially as ADP data recorded in the previous session showed the private sector only added 374,000 jobs in August, far off the mark of an increase of 613,000.

Not only that, but the employment sub-component in the ISM survey manufacturing PMI data also showed a decline, although overall the data increased.

If NFP job growth is weak, it could possibly prompt the Federal Reserve to postpone their bond -buying reduction plans.