Gold Prices Under Pressure Amid Strong ADP Data and Rising Oil

Gold prices have recently trended lower amid ongoing fluctuations in the U.S.-Iran situation. The market is currently awaiting the release of U.S. May non-farm payroll data to determine gold's short-term trajectory.

The strong ADP employment data released on June 3 added short-term pressure on gold, as it exceeded market expectations and indicated that the labor market has not yet cooled significantly. This suggests that the Federal Reserve has no urgent need to pivot toward easing, especially with oil prices climbing again.

Market focus has shifted to the upcoming May non-farm payroll data, which is expected to be released on June 5. If the figure is weaker than expected, it could suggest an accelerating cooling of the labor market and potentially cause Treasury yields to pull back, allowing gold to gain recovery momentum.