GOLD Analysis
Afternoon: Gold Prices Hold Steady Ahead of Crucial U.S. Payroll Data
Highlights:
- Gold prices steady as investors await U.S. payroll data for Fed rate decision.
- U.S. job vacancies hit a three-and-a-half-year low, signaling a labor market slowdown.
- Traders raise odds of a 50-basis-point rate cut to 44% for the Fed’s September meeting.
Overview:
Gold prices remained stable as investors held back from making significant trades ahead of the U.S. payroll data release, which is expected to provide more direction regarding the Federal Reserve's monetary policy decisions. Recent U.S. data revealed a decline in job vacancies to a three-and-a-half-year low in July, signaling some slowdown in the labor market. Despite this, the market believes that the labor market cooling alone might not be enough to warrant an aggressive 50-basis-point rate cut by the Federal Reserve this month.
According to the CME FedWatch Tool, traders have increased the likelihood of a 50-basis-point rate cut at the Fed's September 17-18 meeting from 38% to 44%. This decision is being closely monitored as the Fed balances the need to control inflation with the risk of negatively impacting employment and economic growth. Atlanta Fed President Raphael Bostic warned that keeping interest rates too high for an extended period could harm employment and slow down the economy further.
Key economic data for release includes German Factory Orders m/m, Euro Zone Retail Sales m/m, and U.S. ADP Non-Farm Employment Change, Unemployment Claims, and ISM Services PMI.
Investors are closely watching these developments as they await clearer signals on future interest rate moves.
Action: Buy on drop from 2505$ targeting 2520/2530$ which invalidates below 2488$
Support and Resistance Levels:
