Gold Price Forecast: XAU/USD continues to juggle above $2,020 as investors await US Employment data

• Gold price is continuously auctioning above $2,020 ahead of US labor market data.
• S&P500 futures remained choppy in the Asian session after sensing selling pressure on Tuesday, indicating a quiet market mood.
• The Services PMI is seen declining to 54.5 from the former release of 55.1.

Gold price (XAU/USD) is struggling to find any direction after shifting its auction above $2,020.00 in the Asian session. The precious metal is expected to continue its sideways performance as investors are awaiting the release of the United States Automatic Data Processing (ADP) Employment data for more clarity over the labor market condition.

S&P500 futures remained choppy in the Asian session after sensing selling pressure on Tuesday, indicating mix market mood. The US Dollar Index (DXY) is auctioning marginally above the fresh monthly low at 101.45. The only trigger that could defend the USD Index from further downside is the fear of recovery in global inflation due to solid oil prices.

On the economic front, US ADP Employment data will remain in the spotlight, which is expected to decline to 200K from the former release of 242K. Contracting manufacturing activities in the US economy and lower Job Openings indicate that firms have slowed their hiring process considering the bleak economic outlook. Also, the street is anticipating a sudden pause in the policy-tightening spell by the Federal Reserve (Fed).

Apart from the labor market data, US ISM Services PMI will be keenly watched. The Services PMI is seen declining to 54.5 from the former release of 55.1. And, New Orders Index is expected to soften firmly to 57.6 vs. February’s figure of 62.6.

Gold technical analysis

Gold price is marching towards the horizontal resistance plotted from the 08 March 2022 high at $2,070.54 on a daily scale. Intermediate support is placed from 18 April 2022 high at $1,998.43.

Advancing 10-period Exponential Moving Average (EMA) at $1,984.65 indicates that the bullish momentum is extremely strong.

The Relative Strength Index (RSI) (14) has rebounded after sensing support near 60.00, indicating that every pullback is being considered as a buying opportunity by the market participants.

Gold daily chart