Gold trading in negative territory for the third day in a row.
On Tuesday, the gold price (XAUUSD) fell as the US dollar strengthened and US Treasury bond yields rose.
Rising US Fed rate cut forecasts and geopolitical worries may help limit gold’s losses.
Nonetheless, expectations that the US Federal Reserve (Fed) would decrease interest rates in September may support the precious metal price, as lower interest rates reduce the opportunity cost of keeping non-yielding gold. Additionally, persistent geopolitical concerns in the Middle East may enhance safe-haven assets such as gold.
Investors are looking for a boost from the US ISM PMI in August.
Looking ahead, the Institute of Supply Management’s (ISM) Manufacturing Purchasing Managers Index (PMI) will be release on Tuesday.
Moreover The US Nonfarm Payrolls (NFP) for August will be the highlight of this week, as they may determine the pace of the Fed’s interest rate cuts and influence the gold price in the near future.
Daily Market Movers: Gold price faces selling pressure amid USD’s comeback.
Protests erupted across Israel on Monday, fueled by the government’s inability to reach a ceasefire-for-hostages agreement with Hamas, according to CNN. The action fuele by the assassination of six captives in Gaza. Whose remains were recovered by Israeli soldiers this weekend.
Moreover China’s Caixin Manufacturing PMI increased to 50.4 in August from 49.8 in July, exceeding market expectations of 50.0.
The US ISM Manufacturing PMI predicted to rise to 47.5 in August from 46.8 in July. While the Services PMI is expected to fall to 51.1 in August from 51.4 before.
Furthermore The US economy predicted to add 163K jobs in August. The unemployment rate is predicted to fall to 4.2 percent.
According to the CME FedWatch tool, markets are currently pricing in a nearly 69% chance of the Fed cutting interest rates by 25 basis points (bps) in September, with a 31% chance of a 50-bps cut.
