Article by: ETO Markets

Gold price (XAU/USD) continues to be supported by expectations that the Federal Reserve will cut interest rates by 50 basis points in September, while a decline in US Treasury yields and a weaker US dollar have also provided upward momentum for non-yielding precious metals. However, traders remained cautious ahead of Friday's US non-farm payrolls report (NFP). More recently, a drop in U.S. job openings to a 3-1/2-year low in July, coupled with weak U.S. manufacturing data, has stoked concerns about the health of the U.S. economy, boosting gold's appeal as a safe-haven asset. With rising expectations that the Fed is about to start a rate cut cycle, gold's losses in the short term may be limited.

From a technical point of view, gold is facing some resistance after approaching the psychological $… level, especially around the …-… zone, which is also an important supply area in the recent uptrend. A break in this area would further push gold higher, targeting all-time highs of $…- $….On the downside, the horizontal support level of $… becomes a key support area, and a break below this level could see gold fall back to $… near the 50-day Simple Moving average (SMA), with further declines likely to hit $… and $… near the 100-day SMA.