Gold Prices Struggle Amid US-Iran Tensions and US Labor Data
Gold prices are stuck in a tight range as investors remain cautious amid rising tensions between the US and Iran. The XAU/USD is trading around $4,060, with spot price holding below its 21-day simple moving average at $4,061.33. The Relative Strength Index (14) is neutral-to-soft, indicating a lack of momentum in gold.
The recent recovery in the US Dollar has limited the upside for gold, which is struggling to break above the dominant moving average ceiling. The cluster of overhead averages suggests that the current rally may be capped within a broader corrective phase. Investors are awaiting key economic data, including the US JOLTS Job Openings Survey and Nonfarm Payrolls (NFP) due later this week.
The US labor market is expected to show resilient employment growth, with economists at Deutsche Bank predicting a modest payrolls gain of +65k in July, above June's +57k reading. The Federal Reserve's interest rate trajectory remains uncertain, with markets pricing in a 65% chance of a September rate hike.