Gold price bulls cautious near $2,525 hurdle before US NFP report

• Gold price continues to draw support from dovish Fed-inspired USD selling bias.
• Worries about a US economic downturn further underpin the safe-haven metal.
• Traders turn cautious ahead of the release of the crucial US employment details.

Gold price (XAU/USD) is on the rise, nearing the $2,524-2,525 supply zone, as the US Dollar weakens due to expectations of a larger interest rate cut by the Federal Reserve. Concerns about a weakening US economy have also boosted demand for the safe-haven metal. Traders are closely watching for the release of US employment data, particularly the Nonfarm Payrolls (NFP) report, to gauge the Fed’s future actions and its impact on gold prices.

Daily Digest Market Movers: Gold price benefits from bets for a larger interest rate cut by the Fed in September

• The ADP National Employment Report shows a smaller-than-expected increase in US private-sector employment for August.
• Job openings fell to a three-and-a-half-year low in July, indicating a deteriorating labor market.
• The ISM Services PMI inched up in August, while the Employment Index declined.
• Initial Jobless Claims decreased more than anticipated for the week ending August 31.
• Market expectations of a 50 basis points rate cut by the Fed are keeping US Treasury bond yields low and supporting gold prices.

Technical Analysis: Gold price could accelerate the positive move once the $2,524-2.525 hurdle is cleared decisively

Technical indicators suggest a bullish outlook for gold prices, with potential for further gains if key resistance levels are breached. However, a break below certain support levels could lead to downside pressure on gold prices.