Gold prices (XAU/USD) gained traction on Friday, climbing to $2,365 during the Asian session, marking the highest level since June 21. This rise follows a period of range-bound trading as investors anticipate potential interest rate cuts by the Federal Reserve in September and December, driven by recent softer US macroeconomic data. The weakening US Dollar (USD), now at a three-week low, has further supported the precious metal’s rally.
However, the current risk-on sentiment in the markets may prevent a significant surge in gold prices. Additionally, traders are likely to exercise caution ahead of the US monthly employment report, commonly known as the Nonfarm Payrolls (NFP). This report is crucial in shaping expectations for the Fed‘s future policy moves and will impact USD demand, thereby influencing gold prices.
Gold remains poised for its second consecutive weekly gain, but its short-term trajectory will heavily depend on the forthcoming NFP data and subsequent market reactions.
