Gold rallied to near 4,500 USD after softer-than-expected U.S. jobs data, but tomorrow’s CPI report could shift Fed rate expectations sharply.
Gold prices climbed to fresh highs near 4,500 USD after Friday’s softer U.S. nonfarm payrolls report fueled expectations of a dovish Federal Reserve. The unemployment rate fell to 4.1%, signaling underlying labor market strength despite headline weakness driven by government job losses.
Traders are now focused on tomorrow’s U.S. CPI data, which could determine the Fed’s September policy move and gold’s next direction. A hotter-than-expected report may trigger a selloff as rate hike bets rise, while a soft print could extend the rally.
Technical resistance sits at 4,500 USD, with sellers eyeing a pullback to 3,885 USD if the trendline holds. Buyers aim for a breakout toward 4,800 USD.