Gold prices took a hit during the North American session as traders came back from the Labor Day holiday. Despite signs of economic slowdown in the US, the stronger Dollar weighed down on the precious metal, causing it to trade at $2490, down 0.34%.
The Institute for Supply Management (ISM) reported that the August manufacturing PMI remained below the 50-line contraction/expansion level, signaling a slowdown. However, an improvement in the employment sub-component provided some relief.
This news was welcomed by Federal Reserve officials, especially Fed Chair Jerome Powell, who expressed concerns about the weak labor market. The US 10-year Treasury note yields dropped to 3.84%, further impacting the market.
Looking ahead, the market is pricing in a 65% chance of the Fed cutting its rate by 25 basis points at the upcoming September meeting. This could affect the Greenback and create opportunities for gold traders.
Market Movers: Gold Price Traders Await Busy US Economic Calendar
- ISM Manufacturing PMI for August improved slightly below estimates.
- JOLTS job openings, ADP National Employment Change, and NFP figures are set to be released.
- Investors are eyeing potential Fed easing based on future rates contracts.
Technical Outlook: Gold Price Set to Dive Further Below $2,500
The gold price is showing signs of weakness, with a potential drop to $2,470. However, if it stays above $2,500, it could see a rise towards $2,600.
Overall, gold prices are influenced by various factors, including economic data, Fed decisions, and market sentiment. Understanding these dynamics can help investors make informed decisions about their finances and investments.
