Gold Price Forecast: XAU/USD holds above $2,000, eyes on Chinese Trade Data, US Jobless Claims data

Gold price (XAU/USD) manages to hold above the $2,000 psychological support level during the early Asian session on Thursday. The anticipation that the Federal Reserve (Fed) will cut the interest rate in March 2024 lends some support to the yellow metal. At press time, gold price is trading at $2,025, losing 0.03% on the day.

Meanwhile, the gauge of the value of the USD against a weighted basket of currencies used by US trade partners, trades in positive territory for the third consecutive day, climbing above 104.15. However, the US Treasury yields edge lower, with the 10-year yield dropping from 4.20% to 4.11%.

Data released on Wednesday revealed that the November ADP private payrolls climbed 103,000 from the previous reading of 106,000, weaker than the market expectation of 130,000. The ADP report follows Tuesday’s release of the JOLTS job openings number for October from the Labor Department which showed the figure at its lowest level since March 2021, dropping to 8.73 million from a downwardly revised 9.35 million in September.

Furthermore, Moody’s downgraded its outlook on China’s government credit ratings to negative from stable on Tuesday. That being said, a pessimistic China's economic prospects weigh on the commodity sentiment and create headwinds for the gold price as China is the world’s major gold consumer.

Gold traders will keep an eye on the Chinese Trade Data and the US weekly Jobless Claims data, which is expected to gain 222,000. On Friday, the attention will shift to the US employment data, including the Nonfarm Payroll (NFP), Unemployment Rate, and Average Hourly Earnings. Traders will take cues from these figures and find the trading opportunity around the gold price.