During the North American session, Gold’s price surged as weaker-than-expected US jobs data increased the likelihood of a 50-basis point rate cut by the Federal Reserve. This, coupled with falling US Treasury yields and a weaker US Dollar, pushed the XAU/USD pair to $2493, up by 0.05%.
Throughout the day, Gold prices fluctuated due to profit-taking, hitting a low of $2471. However, a rebound occurred after the US Bureau of Labor Statistics (BLS) released the JOLTS report, showing a decline in job vacancies.
Traders are now anticipating further economic data, including the ADP National Employment Change and the Nonfarm Payrolls (NFP) report, to gauge the Fed’s next move. Market sentiment remains negative amid concerns of a US recession and geopolitical tensions.
Key Market Movements and Technical Analysis
- US JOLTS report reveals a drop in job openings, fueling rate cut speculation.
- Factory Orders for July exceed expectations, indicating strong economic growth.
- Technical analysis shows Gold price hovering around $2500, with resistance at $2531.
Overall, the current market conditions suggest a cautious approach for investors, with the potential for further volatility depending on economic indicators and geopolitical developments.