Gold Prices Dip Ahead of Key US Economic Reports

Gold remained below $2,500 per ounce on Tuesday, continuing its pullback from last week’s record highs as investors awaited US data to adjust their expectations for the Federal Reserve’s interest rate decision. This week’s key data points include the ISM surveys, JOLTS job openings, ADP employment report, and non-farm payrolls. Several Fed officials have recently raised concerns about increasing risks to the labor market. Markets anticipate a total of 100 basis points in rate cuts over the Fed’s remaining three meetings this year, which would reduce the opportunity cost of holding non-interest-bearing assets.

Technically the first support level is at 2,485. If this level is breached, the next supports to watch will be 2,475 and 2,430. On the upside, the initial resistance is at 2,505; if this level is surpassed, the next targets will be 2,530 and 2,550.