Gold consolidates ahead of US June employment data release

Gold prices are consolidating within the $3,320–$3,360 per ounce range ahead of today’s (July 3) release of US employment data. The current state of the American labor market could influence the Federal Reserve’s (Fed) future monetary policy, thereby impacting the precious metal’s value, according to Kelvin Wong, senior market analyst at OANDA.

US ADP data show private sector employment in the United States declined by 33,000 jobs in June, marking the first drop in over two years. However, Reuters notes that low layoff rates continue to support the labor market.

Experts surveyed by the news agency suggest the employment level rose by 110,000 last month, compared to a 139,000 increase in May. If conditions in the American labor market deteriorate further, the Fed may extend its monetary policy easing cycle. This factor could support gold prices, which traditionally rise during periods of economic uncertainty and declining interest rates.