US non-farm payrolls for July came in unexpectedly poor territory, failing to rise by the widely expected 80,000 and instead showing a decrease of 23,000 from the previous figure, which was also significantly revised down from 57,000 to 20,000. This extremely disappointing non-farm payroll data should strengthen investors’ risk-averse appetite for buying gold on dips, as it suggests the US job market may have passed its peak. This would mean the Federal Reserve is less likely to raise interest rates, increasing the upward momentum on gold prices.

However, if Iran continues its hardline stance and fails to reach a easing agreement with the US in the short term, gold prices, after climbing to a certain high level, will likely trigger profit-taking.

Gold prices are expected to trade between $4,302 and $4,394 in the short term. It’s advisable to establish positions at lower levels, with a short-term bullish outlook. A stop-loss order could be placed at $4,282.

Gold Price 1-Hour Chart:

Ferris Kwok

Chief Analyst
Success Finance Group

Email: ferris.kwok@successfn.com