Gold Prices Hold Firm Ahead of Crucial US Labor Market Data

Gold prices held firm on Wednesday (August 5) as investors awaited key US labor market data that could influence the Federal Reserve's next interest rate decision. A softer US dollar and persistent geopolitical tensions also supported bullion, with COMEX gold futures trading at $4,152.30 an ounce, almost unchanged from the previous session.

Markets are focused on the ADP private payrolls report due later on Wednesday and the closely watched US non-farm payrolls data on Friday, which could offer fresh clues on the strength of the world's largest economy. Stronger-than-expected employment data could strengthen expectations that the Fed may need to keep interest rates higher for longer or even consider another rate hike.

Prithviraj Kothari, Managing Director of RiddiSiddhi Bullions, expects gold to find support around $4,000 an ounce and face resistance near $4,200 an ounce. He also sees a range-bound trade with an upward bias for bullion markets.