Gold prices rebounded from three-week lows near $1,940 on Wednesday. Rating agency Fitch has downgraded the US credit rating, causing the US Dollar and US bond yields to fall.
Gold prices need weak US ADP jobs data to see a recovery above the $1,950 price level.
Gold prices were seen trying to recover near the $1,950 price level today after hitting a three-week low on Tuesday.
The US dollar (USD) is seen to be under pressure, as US bond yields also retreated after Fitch downgraded the US credit rating.
If US ADP Employment Change data is released weakly it is expected to support gold price recovery.
Yesterday's JOLTS US Jobs data, seen as having dropped 34,000 from 9.582 million in June, was the lowest in more than two years.
This data is among the FED's main concerns, as it is a barometer of the country's labor market demand.
Investors are focused on US ADP employment changes data, which will likely show that the US private sector may have added 189K workers in July, down from an increase of 497K jobs in June.
The weaker-than-expected US ADP data is likely to lend credence to the Fed's dovish outlook, allowing gold prices to rally higher.
The price of gold yesterday was seen to have "closed" below the price level of $1,950 but above the $1,940 level.
If tonight's job ADP data is seen to have a "bullish" impact on the gold market, it is likely that today's gold price will close above the price level of $1,950 at the same time giving an upward sentiment towards the price of gold in the future which is seen to be able to reach $1,970.
But if it's the other way around, the focus price of investors will shift to $1,920 as a "counter" level.
