Higher With Lower US Tsy Yields, Focus Shifts Employment Data

Gold is exhibiting slight weakness in the Asia-Pacific session, trading at 1958.18 (-0.1%). This follows a 0.8% gain in the gold price on Tuesday as US tsy yields declined, driven by hopes that the US Congress will successfully pass a debt-ceiling deal to avoid a default.

• Both President Joe Biden and Republican House Speaker Kevin McCarthy have expressed confidence in garnering the necessary support for the bill ahead of the upcoming vote, which could take place as early as Wednesday. The agreement has received early backing from influential members of both parties' moderate and pragmatic factions.
• The market focus now turns to the release of the ADP private employment data on Thursday and the Non-Farm Payrolls report on Friday. These releases come amidst increasing expectations that the Federal Reserve will likely raise interest rates again in June or July in an effort to address persistent inflationary pressures. This anticipation has weighed on the price of gold in recent weeks. It is worth noting that the Federal Reserve will enter a policy blackout period starting at midnight on Friday.