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Gold price edges lower in Wednesday’s early Asian session.  The escalating Middle East geopolitical tensions and firmer Fed rate-cut expectations might cap the Gold’s downside.  JOLTS Job Openings and Fed Beige Book are due later on Wednesday.  The Gold price (XAU/USD) bounces off the multi-day lows but remains below the $2,500 barrier amid the renewed bid bias in the US Dollar (USD) on Wednesday. However, the ongoing geopolitical risks and imminent Federal Reserve (Fed) rate cuts might underpin the yellow metal in the near term.  Later on Wednesday, JOLTS Job Openings and Fed Beige Book will be released. Investors will closely monitor the highly-anticipated US August Nonfarm Payrolls (NFP) on Friday, which could determine the size and pace of the potential rate cut by the Federal Reserve’s September policy meeting. If the report shows weaker than expected reading, this could fuel speculation about a US recession and faster Fed rate cuts. This, in turn, could further boost the precious metal as lower interest rates reduce the opportunity cost of holding non-yielding gold.  Daily Digest Market Movers: Gold price loses ground amid firmer US Dollar “We see evidence that speculative positioning in gold is effectively maxed out for the time being. I think the level to which gold is seeing pressure from the rise in the dollar reflects our view on positioning,” said Daniel Ghali, commodity strategist at TD Securities. The US ISM Manufacturing PMI rose to 47.2 in August from an eight-month low in July at 46.8. This figure was below the market consensus of 47.5.  Traders raised the chance of a more aggressive half-point reduction to 39%, up from 31% before the US ISM Manufacturing PMI report, according to the CME Group’s FedWatch measure. The US JOLTS Job Openings are expected to be 8.10 million, down from 8.184 million…

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Filed under: News - @ September 4, 2024 1:21 am