Gold Price Forecast: XAU/USD finds buyers near $2,020, awaits US ADP jobs data

• Gold price is picking up fresh bids near $2,020 as the US Dollar slips despite a risk-off mood.
• Positive US Treasury bond yields could cap the Gold price rebound.
• All eyes on US ADP jobs data for a fresh trading impetus on Gold price.

Gold price is finding a floor near $2,020 early Wednesday, snapping a two-day correction from all-time highs of $2,144 set on Monday.

Gold price capitalizes on a broad US Dollar retreat, as Greenback buyers take a breather following this week’s upswing and ahead of the top-tier US ADP Employment Change data.

The US Dollar is struggling despite a risk-averse market environment, as traders weigh fresh concerns on the Chinese economy. Moody’s Investors Service downgraded its outlook on China’s government credit ratings to negative from stable. The news dissuades investors from placing bets on riskier assets, offering the traditional safe-haven, Gold, some support.

However, the rebound in Gold price could be capped by a modest uptick in the US Treasury bond yields, as markets still price about a 60% probability of a US Federal Reserve interest rate cut in March.

A mixed set of US economic data released Tuesday failed to substantially impact the market’s expectations of the Fed interest rate outlook.

The latest data from the Institute for Supply Management  (ISM) showed that the Services PMI registered 52.7 in November, firming up from October's reading of 51.8. However, US JOLTS Job Openings slid to more than a 2-1/2-year low of  8.733 million in October, suggesting that labor market conditions are loosening further.

All eyes now turn toward the US ADP Employment Change data slated for release in American trading on Wednesday, which will offer fresh hints on the US labor market condition ahead of Friday’s all-important Nonfarm Payrolls release.

Besides, Gold price will also take cues from the prevalent risk trend and its impact on the US Dollar and the US Treasury bond yields.

Gold price technical levels to consider

Gold price remains exposed to upside risks, especially with the Golden Cross and bullish Relative Strength Index (RSI) in play on the daily chart. 

Gold buyers need to find acceptance above the $2,050 psychological barrier on a daily closing basis to resume the uptrend toward the initial hurdle at $2,100. A sustained move above the latter will challenge all-time highs of $2,144 once again.

On the flip side, the immediate support is seen at the $2,000 threshold should the Gold price correction regain traction. The 21-day Simple Moving Average (SMA) at $1,995 will then come to the rescue of Gold buyers.  The last line of defense for Gold buyers is seen at the $1,990 round figure.