GOLD - USD - Gold review after the NFP - 09/10/2024 (GMT)

Gold prices dipped as the dollar strengthened, with investors closely monitoring upcoming U.S. inflation data to assess potential Fed interest rate cuts. Gold price faces selling pressure as the reduced likelihood of a larger rate cut by the Fed boosts US dollar and bond yields. The possibility of a 25 or 50 basis point cut at the upcoming Fed meeting next week hinges on the outcome of the August U.S. consumer price data and Thursday's Producer Price Index. On the other hand, worries about the US economic downturn and geopolitical tensions limit gold price downside, offering support as a safe-haven asset.
  From a technical point of view, the price is once again testing the support area of the 23.6% of the daily Fibonacci retracement level without breaking below while the Bollinger bands have shrunk indicating that volatility is somewhat limited. The 50-day moving average is trading well above the 100-day moving average validating the overall bullish trend in the market while the Stochastic oscillator is in neutral levels hinting that the short-term direction of the trend might go either way. Despite potential rate cuts, gold prices are not expected to see a dramatic loss, with key support at $2,470 and resistance at $2,525.