Gold Price Forecast: XAU/USD extends losses toward $1,800, focus on US employment data

Gold price continues its losing streak that began on September 25, trading lower around $1,820 per troy ounce during the early Asian trading session on Wednesday. The prices of Gold are facing downward pressure amid risk-off sentiment and a stronger US Dollar (USD).

Moderate Chinese economic data released over the weekend failed to contribute any support for the precious metal. China’s NBS Manufacturing PMI for August grew to 50.2 from the previous 49.7 figures, exceeding the 50.0 expected.

Non-manufacturing PMI rose to 51.7 from the 51.0 previous reading, surpassing the market consensus of 51.5. Furthermore, Caixin Manufacturing's PMI reduced to 50.6 in September from the previous print of 51.0, which was expected to improve to 51.2.

US Dollar Index (DXY) surged to an 11-month high in the previous session, propelled by robust US employment data and higher US Treasury yields. The spot hovers around 107.10 at the time of writing.

US JOLTS Job Openings outpaced expectations, contributing to an uptick in US Treasury yields. The 10-year US Bond yield reached its highest level since 2007, hitting 4.81% on Tuesday.

JOLTS report showed that job openings improved to 9.61 million in August from the previous reading of 8.92 million, surpassing market expectations. Furthermore, cautious sentiments surrounding the US Federal Reserve's (Fed) interest rate trajectory are bolstering positive sentiment for the Greenback.

Cleveland Federal Reserve President Loretta Mester indicated a likelihood of favoring an interest rate hike at the next meeting if the current economic conditions persist. Conversely, Atlanta Fed President Raphael Bostic shared a patient perspective on the Fed's policy outlook, stating that there is no rush to raise or reduce rates.

Market participants await the US employment data, with the release of the ADP report on Wednesday and the Nonfarm Payrolls on Friday.