- Gold prices see slight increase, stabilizing at around $2,650 following subpar US ADP employment data.
- November's ADP report shows a hiring slowdown, with only 146,000 jobs added versus the 150,000 expected.
- Fed officials maintain cautious stance on rate cuts amid solid but slowing employment growth and sticky inflation.
Gold prices consolidate at around $2,650 for the seventh consecutive day, posts modest gains of over 0.20% after US jobs data revealed that private hiring dipped, missing economists forecasts. At the time of writing, XAU/USD trades at $2,648.
XAU/USD gains modestly after weaker-than-expected November job growth
Automatic Data Processing (ADP) revealed that companies in the US added 146,000 people to the workforce in November, below estimates of 150,000. Worth noting that the numbers were also below the revised numbers of the previous month, with October figures coming at 184,000, down from 238,000 reported a month ago.
Today’s data, coupled with the latest Job Openings and Labor Turnover Survey (JOLTS) data revealed on Tuesday, confirms that the labor market remains solid. Federal Reserve policymakers, who shifted their dual-mandate priority towards maximum employment, leaving aside price stability, can be relieved that the economy remains solid.
Recently, inflation has proved to be stickier than expected. In the last three months, the US disinflation process stalled, and despite ticking up a tenth, prices remain far from hitting the Fed’s 2% goal.
In the meantime, Fed speakers cross the wires. St. Louis Fed President Alberto Musalem said that time might be near to slow or pause rate cuts. Musalem added the labor market is consistent with full employment and that inflation can converge toward 2% in the next two years.
During the day, the US economic docket will feature Fed Chair Jerome Powell’s speech at around 18:45 GMT.
Gold Price Forecast: Technical outlook
Gold’s remain upward biased, yet remains subdued at around the $2,600-$2,650 for the last seven days. Capped on the upside by the 50-day Simple Moving Average (SMA) at $2,668, if its broken this would expose $2,700. On further strength, bulls can test the year-to-date (YTD) high at $2,790. Conversely, bears stepping in, could drag XAU/USD to $2,600, followed by the 100-day SMA at $2,578.
Gold FAQs
Gold has played a key role in human’s history as it has been widely used as a store of value and medium of exchange. Currently, apart from its shine and usage for jewelry, the precious metal is widely seen as a safe-haven asset, meaning that it is considered a good investment during turbulent times. Gold is also widely seen as a hedge against inflation and against depreciating currencies as it doesn’t rely on any specific issuer or government.
Central banks are the biggest Gold holders. In their aim to support their currencies in turbulent times, central banks tend to diversify their reserves and buy Gold to improve the perceived strength of the economy and the currency. High Gold reserves can be a source of trust for a country’s solvency. Central banks added 1,136 tonnes of Gold worth around $70 billion to their reserves in 2022, according to data from the World Gold Council. This is the highest yearly purchase since records began. Central banks from emerging economies such as China, India and Turkey are quickly increasing their Gold reserves.
Gold has an inverse correlation with the US Dollar and US Treasuries, which are both major reserve and safe-haven assets. When the Dollar depreciates, Gold tends to rise, enabling investors and central banks to diversify their assets in turbulent times. Gold is also inversely correlated with risk assets. A rally in the stock market tends to weaken Gold price, while sell-offs in riskier markets tend to favor the precious metal.
The price can move due to a wide range of factors. Geopolitical instability or fears of a deep recession can quickly make Gold price escalate due to its safe-haven status. As a yield-less asset, Gold tends to rise with lower interest rates, while higher cost of money usually weighs down on the yellow metal. Still, most moves depend on how the US Dollar (USD) behaves as the asset is priced in dollars (XAU/USD). A strong Dollar tends to keep the price of Gold controlled, whereas a weaker Dollar is likely to push Gold prices up.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
Gold loses further impulse and breaches $3,400
Gold pulled back from its all-time high of $3,500 per troy ounce reached earlier on Tuesday, as a resurgent US Dollar and signs of easing tensions in the US–China trade dispute appeared to draw sellers back into the market.
EUR/USD retreats to daily lows near 1.1440
EUR/USD loses the grip and retreats to the 1.1440 zone as the Greenback’s rebound now gathers extra steam, particulalry after some positive headlines pointing to mitigating trade concerns on the US-China front on Tuesday.
GBP/USD deflates to weekly lows near 1.3350
GBP/USD loses further momentum and recedes to the 1.3350 zone on Tuesday, or two-day troughs, all in response to the frmer tone in the US Dollar and encouraging news from the US-China trade scenario.
3% of Bitcoin supply in control of firms with BTC on balance sheets: The good, bad and ugly
Bitcoin disappointed traders with lackluster performance in 2025, hitting the $100,000 milestone and consolidating under the milestone thereafter. Bitcoin rallied past $88,000 early on Monday, the dominant token eyes the $90,000 level.
Five fundamentals for the week: Traders confront the trade war, important surveys, key Fed speech Premium
Will the US strike a trade deal with Japan? That would be positive progress. However, recent developments are not that positive, and there's only one certainty: headlines will dominate markets. Fresh US economic data is also of interest.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.