Gold retreats from June 17 highest amid USD uptick; holds above $4,300 pivotal support
Gold (XAU/USD) drifts lower at the start of a new week and moves away from its highest level since June 17, touched on Friday following the disappointing release of the US Nonfarm Payrolls (NFP) report.
Gold retreated from its June 17 all-time high on Monday, as the US Dollar strengthened on the back of disappointing US Nonfarm Payrolls data. The US economy unexpectedly shed 23,000 jobs in July, with the previous month's reading revised downward to 20,000 from an initial estimate of 57,000. This data suggested a cooling US labor market and weakened the case for the Federal Reserve raising interest rates, which in turn supported the US Dollar and bolstered gold prices.
However, the short-lived rally was soon dampened by geopolitical concerns surrounding Iran's stance on reopening the Strait of Hormuz and the lack of direct talks with the US. The market remained cautious ahead of the US inflation data, with the CME Group's FedWatch Tool indicating a higher probability of a rate hike by year-end.
Traders may choose to wait for the latest inflation figures before making further moves on gold, which remains below the crucial 4,300 support level and the 50% Fibonacci retracement level.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — it may contain errors, so check the original before relying on it.
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