On April 2, 2025, two significant events influenced the financial markets: the release of the ADP National Employment Report and President Donald Trump’s “Liberation Day” tariff announcement. These developments had notable implications for the price of gold (XAU/USD) and the U.S. Dollar Index (USDX).
Today’s given signal : https://t.me/calendarsignal/17733
ADP National Employment Report:
The ADP National Employment Report indicated that the U.S. private sector added 77,000 jobs in February 2025, suggesting a slowdown in employment growth.
Trump’s “Liberation Day” Tariff Announcement:
On the same day, President Trump declared April 2 as “Liberation Day,” unveiling plans to impose new tariffs aimed at addressing trade imbalances and promoting domestic manufacturing. The proposed measures included a 25% tariff on auto imports and reciprocal tariffs targeting countries with existing duties on U.S. goods.
Impact on Gold Prices (XAU/USD):
Gold prices are sensitive to economic indicators and geopolitical events. The combination of weaker employment data and escalating trade tensions can influence gold prices through.
- Safe-Haven Demand: Trade uncertainties and potential economic slowdowns often drive investors toward safe-haven assets like gold, increasing its price.
- Inflation Expectations: Tariffs can lead to higher consumer prices, raising inflation expectations and enhancing gold’s appeal as an inflation hedge.
In 2018, the U.S.-China trade war intensified with the imposition of tariffs on billions of dollars’ worth of goods. During this period, despite an ADP employment change of 180,000, gold prices increased by 13.1%, highlighting the metal’s role as a safe-haven asset amid trade tensions.
Key Takeaways:
- Weaker employment data and escalating trade tensions often lead to USD depreciation and gold appreciation due to increased economic uncertainty.
- Conversely, strong employment figures and easing trade tensions can result in USD appreciation and gold depreciation.
Previous released data results :
On last ADP data (5-3-2025) we predicted good data, & as per that we suggest to SELL XAUUSD & as a result, we made a profit of 108 points according to the signal we gave.
Check the previous blog : https://blog.forextrade1.co/impact-of-adp-ism-non-manufacturing-data-on-xauusd-5-3-2025/
Check last given signal : https://t.me/calendarsignal/17301
Performance : https://t.me/calendarsignal/17324
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