Gold Prices Stable After Mixed US Jobs Report

Gold held steady around $2,500 per ounce on Monday as investors evaluated the Federal Reserve’s potential interest rate cut this month, following a mixed US jobs report. The report showed fewer job additions than expected and significant downward revisions for June and July. Despite this, the unemployment rate fell to 4.2%, as predicted, and wage growth rose to 0.4%, surpassing the 0.3% forecast. Federal Reserve Bank of New York President John Williams suggested that a rate cut is now suitable due to progress on inflation and a cooling labor market. The markets are split on whether the Fed will cut rates by 25 or a more significant 50 basis points in its next meeting but are generally anticipating a total of 125 basis points in cuts over the remaining meetings this year. A more accommodating monetary policy benefits gold by lowering the opportunity cost of holding non-interest-bearing assets.

Technically the first support level is at 2,470. If this level is breached, the next supports to watch will be 2,430 and 2,400. On the upside, the initial resistance is at 2,500; if this level is surpassed, the next targets will be 2,530 and 2,550.