Gold Slides to Two-Week Lows as US Jobs Data Looms

Gold prices have fallen to near two-week lows as investors await US jobs data that could influence the Federal Reserve's decision on interest rates in September. Markets now put the probability of a rate increase at around 66%. The Fed's Chair Kevin Warsh warned at Jackson Hole that policymakers may need to tighten again if inflation fails to move convincingly towards 2%.

The JOLTS job-openings report is due later Tuesday, followed by the ADP private-payroll report and the official August employment report on Friday. These reports are crucial in determining whether the Fed will raise interest rates in September or not.

FXStreet analyst Dhwani Mehta sees $4,400 as an increasingly important near-term battleground for gold prices, with the 21-day moving average around $4,430 and the 100-day average around $4,366. A recovery through the 200-day average near $4,531 would strengthen the bullish setup again.