Gold extends losses despite global market sell-off

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Gold extends losses despite global market sell-off
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Gold (XAU/USD) trades marginally lower on Wednesday, exchanging hands in the $2,490s.

Gold continues slowly falling despite risk sentiment turning negative following weak US manufacturing data. Overcrowded long positioning could be the reason the commodity is not rising as expected. Technically, Gold has broken below the key $2,500 level – a bearish sign for the precious metal. Gold trades marginally lower on Wednesday, exchanging hands in the $2,490s.

A more pronounced decline in openings, however, would raise concerns regarding the state of the jobs market and further increase the chances of the Fed making a larger 0.50% cut. ADP Employment Change and Jobless Claims follow on Thursday, but the main event on the calendar will be US Nonfarm Payrolls on Friday. If NFPs increase less than expected it would further support the case of the larger cut.

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