Gold prices have experienced a short-term recovery, with the XAU/USD pair trading above the $2,500 level. The market’s focus remains on the Federal Reserve’s monetary policy outlook, with expectations for interest rate cuts in September increasing.
The weaker-than-expected US economic data has raised concerns about the US labor market’s strength, potentially impacting the Federal Reserve’s decision on interest rate cuts. The market is now pricing in a higher probability of a 50 basis point rate cut in September.
Gold Technical Outlook
Gold prices have shown a bullish trend, with the potential for further gains. The 2,470-2,460 level could act as a key support, with potential for further downside if the pair breaks below this level. However, the recent bullish candlestick patterns and the upward-sloping EMAs suggest a potential for a short-term rebound.
