Impact: US ADP & ISM Non manufacturing data on gold pair - 5-2-2025

When the US ADP Employment Report and ISM Non-Manufacturing Index come in stronger than expected, it indicates job market strength and economic expansion. This increases expectations for higher interest rates, a stronger US dollar, and rising Treasury yields, which are bearish for gold prices.

Today’s given signal : https://t.me/calendarsignal/16875

Reasons Why Higher ADP & ISM Non-Manufacturing Data Lower Gold Prices

Stronger Labor Market & Business Activity
- ADP Employment Growth shows that private businesses are hiring, indicating a healthy job market.
- ISM Non-Manufacturing Index above 50 signals expansion in the services sector, which contributes to overall GDP growth.
- Example: If ADP employment rises by 350K jobs and ISM Non-Manufacturing reaches 56.5, it reduces recession risks, lowering gold’s safe-haven appeal.
Hawkish Federal Reserve Expectations
- Strong labor and services sector data allow the Federal Reserve to maintain or increase interest rates.
- Higher interest rates boost Treasury yields, making bonds more attractive than gold since gold does not yield interest.
Stronger US Dollar Reduces Gold Demand
- A strong labor market and expanding services sector reinforce economic confidence, strengthening the US Dollar Index (DXY).
- A stronger USD makes gold more expensive for foreign investors, reducing its demand.

What Causes Strong ADP & ISM Non-Manufacturing Data?

✅ Factors Behind High ADP & ISM Data:

Business Expansion: Companies hire more employees due to rising consumer demand.
Government Spending: Infrastructure projects and stimulus programs drive hiring and services growth.
Strong Corporate Earnings: Higher business profits lead to increased investment and hiring.

❌ Factors That Can Weaken ADP & ISM Data:

High Inflation & Interest Rates: Businesses cut hiring and expansion.
Recession Fears: Companies slow down hiring due to economic uncertainty.

Previous released data results :

On last ADP data (8-1-2025) we predicted good data, & as per that we suggest to SELL XAUUSD & as a result, we made a profit of 36 points according to the signal we gave.

Check the previous blog : https://blog.forextrade1.co/analysis-based-on-todays-us-economic-events-8-1-2025/

Check last given signal :https://t.me/calendarsignal/16515
Performance : https://t.me/calendarsignal/16530

On last Non ISM Manufacturing data (7-1-2025) we predicted good data, & as per that we suggest to SELL XAUUSD & as a result, we made a profit of 27 points according to the signal we gave.

Check the previous blog : https://blog.forextrade1.co/forecasting-gold-trends-in-based-on-us-non-ism-manufacturing-jolts-job-opening-data-7-1-2025/

Check last given signal : https://t.me/calendarsignal/16501
Performance : https://t.me/calendarsignal/16511