GOLD - USD - Gold before the NFP - 09/02/2024 (GMT)

The decline in gold prices is attributed to the stronger USD and concerns about the sluggish Chinese economy, but expectations of a Fed interest rate cut may limit further losses. The recent upward revision of second-quarter GDP growth and robust consumer spending suggest a potentially less aggressive rate cut by the Federal Reserve, impacting gold prices. The Federal Reserve's focus on the Personal Consumption Expenditures (PCE) index and upcoming jobs report will heavily influence the September rate decision and market expectations. The upcoming US PMI data and employment report on Friday will be closely monitored by traders for potential market impact.
  From a technical point of view, the price dropped below the $2,500 mark briefly testing the support area of the 23.6% of the daily Fibonacci retracement level. The Stochastic oscillator has corrected to neutral levels after being at the extreme overbought level for almost a month straight. The faster-moving average, the 50-day, is trading well above the slower 100-day moving average validating the overall bullish trend in the market for gold; however if the price makes a valid break below the support of the Fibonacci levels there might be a short-term reversal before continuing further North.