As the world’s top investment manager and financial market journalist, I am here to provide you with the latest insights on the impact of market turbulence on gold prices. The recent currency gains and declines in bond yields and stocks have created a volatile environment, leading to increased market volatility and shifting expectations for significant Fed rate cuts.
Gold’s bullish trend continues, with key support levels at $2410 and resistance at $2450 and $2483. Despite the recent fluctuations, there is still potential for gold to move positively against major currencies once equity markets stabilize.
NFP Report and ISM Services PMI: What to Watch
Friday’s disappointing jobs report had a mixed effect on gold prices, as bond yields dipped sharply but failed to boost gold. The sell-off in stocks and liquidation of leveraged long trades negatively impacted gold, but the downside seems limited. With the ISM services PMI report set for release, further volatility is expected across asset classes.
Short-term US yields have plummeted due to market expectations of significant Fed rate cuts, with a potential 50-basis point cut in September. This shift in Fed policy could have a significant impact on market sentiment and gold prices.
Focus on ISM Services PMI and Gold Technical Analysis
This week, investors should pay close attention to the ISM services PMI report, which is expected to rebound and indicate expansion. The employment component of the report could influence market sentiment and gold prices in the near term.
From a technical perspective, gold’s outlook remains positive, with short-term support levels at $2410 and $2360, and resistance at $2450 and $2483. Traders should monitor the unwinding of carry trades and economic indicators to make informed decisions.
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