Gold Struggles to Find Footing Amid Disappointing Labor Market Data

The gold market is struggling to find its footing after seeing significant selling pressure since the start of the week. This comes as ADP reported that private-sector payroll processors created fewer jobs than expected in August, with a total of 38,000 new positions added.

This figure falls short of consensus estimates, which had forecasted a gain of 47,000 jobs. The report also noted that job growth has missed expectations for three consecutive months.

Despite the disappointing data, markets are still pricing in a rate hike this month, with a 62% chance according to the CME FedWatch Tool. However, some analysts believe further weakness in the labor market could keep the Federal Reserve on the sidelines, which would be positive for gold.