

Market Analysis
The Gold price (XAU/USD) continues to decline, approaching the critical $2,500 psychological level on Monday. This decline is largely driven by a stronger US Dollar following the release of July's Personal Consumption Expenditures (PCE) Index, which has exerted pressure on the precious metal. Additionally, concerns about the slowing economy in China, the world's largest Gold consumer, are contributing to the downward trend.
However, the increasing anticipation of an interest rate cut by the US Federal Reserve (Fed) at its September meeting could potentially limit Gold's losses, as lower interest rates tend to reduce the opportunity cost of holding non-yielding assets like Gold. In the week ahead, the US ISM Manufacturing PMI for August is scheduled for release on Tuesday, followed by the Services PMI on Thursday. Attention will then shift to Friday's US employment data, which includes Nonfarm Payrolls (NFP), the Unemployment Rate, and Average Hourly Earnings for August.
Technical Analysis: Gold Price Maintains Positive Broader Outlook Gold remains in negative territory for the day but continues to maintain a broader bullish outlook on the daily chart, with the price staying above the key 100-day Exponential Moving Average (EMA). The 14-day Relative Strength Index (RSI) is positioned above the midline at around 56.30, indicating that the path of least resistance may still be to the upside.
The upper boundary of a five-month-old ascending channel, along with the all-time high of $2,530-$2,540, presents a significant challenge for Gold bulls. A successful breakout above this level could open the door to the $2,600 psychological mark.
On the downside, the first key support level for Gold is at $2,470, the low from August 22. Continued bearish momentum could lead to a further decline toward $2,432, the low from August 15. The next critical support level to monitor is $2,372, which aligns with the 100-day EMA.
Paraphrasing text from "FX Street" all rights reserved by the original author.