Here is today's XAUUSD update for October 6, 2023. Gold prices rose slightly above $1,820 early Friday, following Thursday's movement in Asian trading. Market sentiment turned positive ahead of the key Nonfarm Payrolls (NFP) data from the United States, which is scheduled for release today.

The focus is on NFP data and US Treasury yields.

Gold is seeking recovery opportunities as the US Dollar (USD) enters a consolidation phase after a two-day decline from an 11-month high. The weak sentiment around the USD is linked to a slightly optimistic mood in Friday's Asian trading session, despite mixed developments in China's property market.

Sunac China Holdings Ltd. saw a significant surge after the property developer secured approval for its debt restructuring plan. Meanwhile, China Evergrande Group shares fell by more than 10%, limiting the gains in Asian indexes. However, Hong Kong's Hang Seng rose by 2% today.

The continued decline in oil prices and stable US Treasury yields provided comfort to investors. While they remain cautious, refraining from taking new positions on Gold and the USD, attention is focused on the upcoming US labor market data.

Economists project that the US economy will add around 170,000 jobs in September, slowing down from the 180,000 reported in August.

The unemployment rate is expected to dip slightly, from 3.8% to 3.7% in September, while Average Hourly Earnings are likely to grow around 4.3% YoY, in line with previous trends.

After ADP reported a much smaller-than-expected gain in US private-sector jobs at only 89,000 in September, risks remain for a weaker NFP report.

This could dampen expectations for a November rate hike by the US Federal Reserve (Fed), especially given the weaker labor market conditions.

If the US NFP report disappoints, the USD could face a notable correction, particularly alongside Treasury yield movements. This might boost Gold's recovery toward the $1,850 level and beyond.

Conversely, if the US labor market data, including wage inflation, suggests the Fed may raise rates again later this year, the USD could extend its bullish trend, negatively impacting Gold prices, which do not offer interest.


Disclaimer!

That concludes the explanation of "XAUUSD Today: October 6, 2023 – US NFP Trigger for Recovery?". This analysis is based on fundamental and technical views from reliable sources and is not intended as advice or a solicitation. Always remember that this content is aimed at enriching the reader's knowledge. Be sure to conduct your own research on other forex information to guide your trading decisions.

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