Gold, the ultimate safe-haven asset, is currently trading around the key $2,500 mark, within a familiar range that has been holding steady for the past few weeks. Traders are closely monitoring the possibility of the Federal Reserve implementing a larger-than-usual 50 bps interest rate cut, which could have a bullish effect on Gold as it is a non-interest paying asset.
Key Factors Affecting Gold Prices:
- US Jobs Data: Recent mixed US jobs data has cast doubt on market expectations of a 0.50% interest rate cut by the Fed, impacting Gold prices.
- Inflation and Geopolitics: Analysts are awaiting US CPI and PPI data for August, while escalating geopolitical tensions in Gaza and Ukraine are supporting Gold’s safe-haven status.
Technical Analysis:
Gold continues to trade within a sideways range between $2,531 and $2,475, with the current price hovering in the middle of this range. A decisive breakout above $2,531 could signal a continuation of the bullish trend towards the $2,550 target.
XAU/USD 4-hour Chart
Overall, the future trajectory of Gold prices will be influenced by a combination of economic indicators, geopolitical developments, and market sentiment. Investors should closely monitor key events such as the US CPI release and geopolitical tensions to make informed decisions about their investment strategies.