Gold Struggles to Find Footing Amid Weakening Labor Market

The gold market is struggling to find its footing as the US labor market continues to show signs of weakness. According to ADP, private sector job creation came in at 38,000 in August, down from 46,000 in July and below the expected 47,000.

This marks the third consecutive month that job growth has missed expectations, with markets still pricing in a rate hike this month according to the CME FedWatch Tool. There is currently a 62% chance of a rate hike on September 16, despite the disappointing labor market data.

Some analysts believe that further weakness in the labor market could keep the Federal Reserve on the sidelines, which would be positive for gold. However, others point out that the Fed doesn't pay much attention to this report and will likely focus on Friday's Nonfarm Payrolls data.