Analysts: Ahead of Non-Farm Payrolls Data Release, Market Expectations for Further Fed Rate Cuts Heat Up

Odaily News According to analyst Haresh Menghani, gold maintained a slight downtrend during the first half of the European session. However, ahead of the highly anticipated US Non-Farm Payrolls data release, investors opted to wait and see, leaving gold prices lacking strong bearish momentum. The crucial US employment data will provide clues about the Federal Reserve's interest rate cut path, which in turn will play a key role in influencing the short-term direction of the US dollar and bring new momentum to gold. Amid risk-averse sentiment before the key data release, the US dollar extended its two-week uptrend, hitting a one-month high, exerting some downward pressure on gold prices. Nonetheless, the heating market expectations for further Fed rate cuts, coupled with persistent geopolitical uncertainties, continue to provide support for gold as a safe-haven asset. This mixed fundamental backdrop has made traders reluctant to place new directional bets, resulting in lackluster gold price movements and a range-bound pattern. (Jin10)