Gold Price Stalls Amid US-Iran Tensions and Strong Employment Data
The gold price is attempting to bounce back around $4,050 in Asian trading on Tuesday after a two-day decline. However, buyers lack conviction as a gradual recovery in the US Dollar continues to limit the metal.
Renewed tensions between the United States and Iran have fueled concerns about global economic instability, but President Donald Trump's claim of talks with Iran has been dismissed by Tehran. The ISM Manufacturing PMI data showed a significant jump to 55.6 last month, beating market forecasts and adding to the dollar's haven demand.
The US labor market is in focus this week, with key employment reports due later in the week, including Friday's Nonfarm Payrolls. Markets are pricing in a 65% chance of a rate hike in September, according to the CME Group's FedWatch Tool, after the divided Federal Reserve left rates unchanged at its July policy meeting.