If the US non-farm payroll data for August, released later tonight, shows a figure higher than the consensus expectation of 56,000, and the previous contraction is revised upwards to positive growth, this solid data will once again reinforce expectations that the Federal Reserve has room to raise interest rates. This upward trend in interest rates should interrupt the sharp rise in gold prices over the past two trading days.

On the other hand, if US long-term bond yields are pushed up again, the inflation signals reflected in these yields will increase investors’ willingness to cash out in the gold market.

Gold prices may fluctuate between $4,421 and $4,523 in the short term. Pay close attention to the upper end of this range for potential selling opportunities. There is room for short-term pullbacks; $4,543 can be considered an important defensive level. Be sure to manage risk accordingly.

Risk Warning: This article is for market analysis purposes only. The price ranges and levels mentioned are for market observation and reference only and do not constitute any investment advice. Precious metal prices are highly volatile; please make independent and prudent decisions and manage your own risk accordingly.

Gold Price 1-Hour Chart:

Ferris Kwok

Chief Analyst
Success Finance Group

Email: ferris.kwok@successfn.com