Gold Daily | International Gold Prices Drop Below $2,480 Amid U.S. Employment Report Anticipation

【Latest Gold Price and Recent Trends】

International gold prices fell, failing to hold the $2,480 level as investors prepare for the upcoming U.S. monthly employment report, which may influence the Federal Reserve's rate cuts this year.

【Technical Analysis】

Gold is facing strong support at $2,483.40 per ounce, but has not yet confirmed a break below this level. Immediate resistance is at $2,500.00 per ounce; if broken, the next target is $2,540.00 per ounce. Failure to hold above $2,483.40 could see prices drop to $2,445.75 per ounce or lower.

【Market Sentiment and Economic Background】

Recent data indicates U.S. manufacturing activity shrank for the fifth consecutive month in August. The ISM Manufacturing PMI recorded 47.2, below expectations of 47.5 but slightly higher than 46.8 in July. Concerns about economic growth are prevalent, contributing to market volatility. Additionally, the Federal Reserve's pending rate cuts, with probabilities of 31% for a 50 basis points cut and 69% for a 25 basis points cut, are influencing market sentiment. The JOLTS job openings report and the upcoming non-farm payrolls data are pivotal for future rate decisions.

【Analyst Opinions】

Kelvin Wong from OANDA suggests gold could rise if upcoming U.S. economic data show weakness, prompting significant Fed rate cuts. Vishnu Varathan from Mizuho Bank attributes market weakness to multiple factors, including U.S. data and China's recovery uncertainty. Jason Teh from Vertium Asset Management notes increased market volatility, with a cautious outlook on economic slowdowns. Kyle Rodda from Capital.com indicates that weak employment data could increase the likelihood of a 50 basis point rate cut, benefiting gold.