Gold Price Forecast: Markets Eye Critical US Data for Next Move
Gold has been consolidating its recent rebound from an eight-week low of $4,110 in Asia on Wednesday. The metal remains below $4,200 ahead of critical US data releases.
The ADP jobs report and core Personal Consumption Expenditures (PCE) Price Index data are expected to shed light on the Federal Reserve's interest rate outlook. Markets are pricing in a 47% chance of a Fed rate hike in October, down from 70% a day ago, according to CME Group's FedWatch Tool.
New York Fed President John Williams said that policymakers may only need one more hike this year to get inflation back on track to the central bank's 2% target. This tempered urgency for rate hikes weighed heavily on US Treasury bond yields and fueled a correction in the US Dollar, contributing to Gold's rebound.