Gold Price Forecast: XAU/USD remains on the defensive above $1,800, US NFP eyed

Gold price (XAU/USD) remains on the defensive around $1,820 after bouncing off the weekly low of $1,813 during the early Asian session on Friday. The precious metal struggles to gain as the Federal Reserve (Fed) is not expected to abandon its ‘higher-for-longer’ stance on interest rates. Market players await the highly-anticipated US Nonfarm Payrolls for more clarity about labor market conditions.

That being said, the higher US Treasury yields exert some selling pressure on non-yielding assets like Gold. Meanwhile, the US Dollar Index (DXY) declined to 106.40 after retreating from monthly highs. US Treasury yields also edges lower, with the 10-year Treasury yield dropping to 4.73%. While the YS 2-year stays at 5.02%.

On Thursday, the US Initial Jobless Claims for the week ending on September 30 improved to 207K from the previous reading of 205K, according to the US Department of Labor. This figure registered below the market expectation of 210K. Furthermore, the US Balance of Trade deficit was $58.3 billion, lower than the expected of $62.3 billion and the $64.7 billion recorded in July.

The US employment data on Friday will be in the spotlight. The Nonfarm Payrolls are expected to rise by 170K while the Unemployment Rate is estimated to decline to 3.7% from 3.8%. The softer figures could trigger the sell-off in the Greenback against its rivals and might act as a tailwind for XAU/USD.

Gold traders will monitor the US Average Hourly Earnings for September, Nonfarm Payrolls, and the Unemployment Rate. These events could trigger the volatility in the market. Traders will take cues from these events and find trading opportunities around the gold price.