Gold Awaits US Jobs Report Amid Rate Cut Speculation

Gold remained close to $2,500 per ounce on Thursday as investors awaited the crucial US jobs report for further insights into the Federal Reserve's potential interest rate cuts, which could lower the opportunity cost of holding non-yielding gold. On Wednesday, JOLTS data showed a much larger-than-expected decline in job openings, hitting 2021 lows and reinforcing expectations of a slowing labor market, which fueled speculation for a significant 50 basis point rate cut by the Fed this month. Additionally, the sharp drop in US factory activity reported by the ISM PMI has cast doubt on the US economy’s ability to withstand higher interest rates. Consequently, investors have increased their expectations to 125 basis points in rate cuts over the Fed's remaining three meetings this year, up from last week's consensus of 100 basis points. The key US jobs data is set to be released on Friday.

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.