Gold wobbles around $3,340 ahead of NFP jobs

Gold trades in a tight range around $3,340 on Wednesday, with XAUUSD struggling for direction as investors await the US nonfarm payrolls data for June, scheduled to be released on Thursday.

Investors will pay close attention to the NFP data as a few Federal Reserve officials have argued in favour of early interest rate cuts, citing labour market risks.

“The Fed should not wait for the job market to crash in order to cut rates,” Fed Governor Christopher Waller said in an interview last week.

Theoretically, lower interest rates by the Fed bode well for non-yielding assets, such as gold.

Ahead of the NFP data, investors await the ADP Employment Change data for June, with the US private sector expected to have added 95,000 fresh workers, significantly higher than 37,000 recorded in May.

Meanwhile, a decent recovery move in the US dollar, following the upbeat JOLTS Job Openings data for May has also limited Gold’s upside. A higher dollar makes gold an expensive bet for investors.

The DXY Dollar Index, which tracks the greenback’s value against six major currencies, recovers sharply to near 97.00 after snapping nine-day losing streak.

On the economic front, uncertainty surrounding the deadline of the reciprocal tariffs on July 9 and progress in President Donald Trump’s so-called “Big Beautiful Bill” will continue to support gold.

Looking at the technical analysis, gold would enter unchartered territory after breaking above the psychological level of $3,500. Potential resistances would be $3,550 and $3,600.

Alternatively, a downside move below the May 29 low of $3,245 would drag XAUUSD towards the round-level support of $3,200, followed by the May 15 low at $3,121.