Gold Price Forecast: Will Key U.S. Data Spark a Price Breakout?
Gold Markets on a Faltering Path
Gold prices edged lower on Monday, reflecting a quiet trading session due to the U.S. bank holiday. Market activity remained subdued as major players stayed on the sidelines, anticipating key U.S. economic data releases later in the week, including the critical Non-Farm Payrolls report on Friday. The Federal Reserve’s upcoming policy meeting on September 17-18 also looms large, keeping traders cautious.
Current Gold Trading Status
At 10:56 GMT, XAU/USD is trading $2500.13, down $3.27 or -0.13%. Gold dropped to its lowest level in over a week on Monday, weighed down by a strengthening U.S. dollar.
- U.S. Dollar Pressure: The dollar's firming trend, driven by rising long-term Treasury yields and reduced expectations for aggressive Fed rate cuts, made gold less attractive.
- Rangebound Trading: Gold has been rangebound between $2,531.77 and $2,470.85 since August 22.
Key U.S. Economic Data on the Horizon
- Traders are monitoring several upcoming U.S. economic data releases:
- ISM surveys
- JOLTS job openings
- ADP employment
- Non-Farm Payrolls report
Economists surveyed by Reuters expect an increase of 165,000 jobs in August, up from 114,000 in July, with the unemployment rate potentially dipping to 4.2%.
Market Forecast: Gold's Path Forward
Given the current market conditions and the looming uncertainty over the Fed’s rate decision, gold prices are expected to remain within their recent range. A stronger dollar and rising U.S. Treasury yields could continue to apply downward pressure on gold. However, if the upcoming U.S. economic data fails to meet expectations, it could prompt a shift in market sentiment.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.