Spot Gold Wavers as U.S. Economic Data Takes Centre Stage
Spot Gold Wavers as U.S. Economic Data Takes Centre Stage
The yellow precious metal weakened overnight as the U.S. Dollar Index (DXY) held steady at 101.75.
As trading resumed after the U.S. Labor Day holiday, new economic data rekindled concerns about the economy’s health.
U.S. manufacturing data for August missed the forecast of 47.5, coming in at 47.2, slightly above July’s 46.8.
With a slew of economic reports due this week, including the monthly jobs report, investors will closely monitor these figures ahead of the Federal Reserve’s interest rate decision on September 18.
Odds favour a 25-basis-point cut, though some anticipate a larger 50-basis-point reduction.
The U.S. jobs report, due Friday, is expected to show an increase of 164,000 jobs in August, up from 114,000 in July.
Based on technical assessment, the Relative Strength Index (RSI) is negative, the Moving Average Convergence Divergence (MACD) holds a weak bias, and the Average Directional Index (ADX) indicates a ranging market.
Although the gold market has weakened, the broader view is expected to remain bullish.
However, traders should monitor signals closely and adjust risk management strategies accordingly.
With the support intact at $2,488, the bullish bias may continue, aiming for resistance at $2,517-19.
A break above this level could lead to a $2,530-32 target and reassess positions from there. Beneath $2,488 views, the area of $2,458-62.
Daily Chart Spot Gold
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