Gold price (XAU/USD) is on the rise in Monday’s Asian session, supported by disappointing US employment reports and a risk-off sentiment. The softer US Dollar (USD) and Treasury bond yields are also contributing to the uptrend in the yellow metal. Additionally, escalating geopolitical tensions in the Middle East are boosting demand for safe-haven assets like Gold.
Investors are now awaiting the release of the US ISM Services PMI for July, scheduled for Monday. This data could provide further direction for Gold prices, with a potential upside if the Services PMI exceeds expectations.
Daily Digest Market Movers: Gold price edges higher amid softer US jobs data and rising geopolitical risks
- US Secretary of State warns of potential attack by Iran and Hezbollah on Israel.
- US Nonfarm Payrolls report for July falls short of expectations, with a rise of 114K.
- US Unemployment Rate climbs to 4.3% in July.
- Market predicts a 74% chance of a 50 bps cut by the Fed in September.
Technical Analysis: Gold price keeps the bullish vibe in the longer term
Gold price is maintaining a bullish outlook, trading above the key 100-day EMA and with a positive RSI. The precious metal is currently within an ascending trend channel, with potential upside targets at $2,450 and $2,483. On the downside, support levels are at $2,355 and $2,335.
Gold FAQs
- Gold is a safe-haven asset and hedge against inflation.
- Central banks hold the largest Gold reserves to strengthen their currencies.
- Gold has an inverse correlation with the US Dollar and risk assets.
- Price movements in Gold are influenced by geopolitical events and US Dollar strength.
Overall, the current market conditions are favorable for Gold prices as investors seek safety amid global uncertainties. It is important to monitor key economic data releases and geopolitical developments to gauge the future direction of Gold prices and make informed investment decisions.