The post Gold price consolidates below $2,500 mark, bullish potential seems intact appeared on BitcoinEthereumNews.com.

Gold price stalls the post-NFP retracement slide from the vicinity of the all-time peak. Reduced bets for a larger rate cut by the Fed underpin the USD and act as a headwind. Worries about the US economic slowdown and geopolitical risks continue to offer support. Gold price (XAU/USD) witnessed an intraday turnaround from the vicinity of the all-time peak and dropped back below the $2,500 psychological mark following the release of the key US monthly employment details on Friday. The mixed US jobs report reduced the likelihood of a larger 50 basis point rate cut by the Federal Reserve (Fed), which, in turn, prompted some US Dollar (USD) short-covering and exerted some pressure on the precious metal. That said, worries about a US economic downturn temper investors’ appetite for riskier assets and act as a tailwind for the safe-haven Gold price. Apart from this, the lack of progress in ceasefire negotiations between Israel and Hamas turned out to be another factor lending support to the XAU/USD during the Asian session on Monday. This warrants caution for bearish traders amid the prospects for an imminent start of the Fed’s rate-cutting cycle.  Daily Digest Market Movers: Gold price struggles to gain any meaningful traction amid mixed cues The US Bureau of Labor Statistics (BLS) reported on Friday that Nonfarm Payrolls (NFP) rose by 142,000 in August as compared to 160,000 expected and the previous month’s downwardly revised reading of 89,000. Other details of the report showed that the Unemployment Rate edged lower to 4.2% from 4.3% in July and wage inflation, as measured by the change in Average Hourly Earnings, rose to 3.8% from the 3.6% previous. According to the CME Group’s FedWatch tool, the markets are pricing around a 70% chance of a 25-basis-points rate cut by the Federal Reserve later…

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Filed under: News - @ September 9, 2024 3:21 am