Gold prices dip as US markets close for Labor Day, upcoming economic reports to impact Fed rate decision
Gold prices experienced a slight decline during the North American session due to low trading volumes with US markets closed for Labor Day. Meanwhile, the US Dollar remains strong as investors await key economic reports that could influence the Federal Reserve’s decision on a potential rate cut in September. The XAU/USD pair is currently trading at $2,499, down by 0.14%.
This week, the US economic calendar is packed with important releases, including the Institute for Supply Management’s (ISM) PMIs, JOLTS job openings, ADP Employment Change, and Nonfarm Payrolls (NFP) data.
During a recent speech at Jackson Hole, Federal Reserve Chairman Jerome Powell mentioned that while inflation risks are decreasing, employment risks are on the rise, sparking concerns about a possible recession.
Geopolitical tensions also remain on the radar as President Biden considers proposing a ceasefire deal between Israel and Hamas, a move that could potentially impact the financial markets.
Analysis and Breakdown:
Gold prices dipped as US markets closed for Labor Day, leading to lower trading volumes. The upcoming economic reports, including ISM PMIs, JOLTS job openings, ADP Employment Change, and Nonfarm Payrolls, are expected to influence the Federal Reserve’s rate decision. Federal Reserve Chairman Powell’s comments on inflation and employment risks have raised concerns about a possible recession. Geopolitical tensions, such as the potential ceasefire deal between Israel and Hamas, add to the market uncertainty.