Gold price consolidates as focus shifts to US labor market data

Share:

• Gold price turns sideways after a solid recovery as investors await fresh triggers for further action.
• Fed’s Powell kept doors open for further policy tightening to ensure price stability.
• Fed’s Mester supports one more interest rate hike, though not necessarily in September.

Gold price (XAU/USD) turned lackluster after defending the critical support of $1,900.00 on Monday. The precious metal consolidates as investors prepare for crucial economic indicators such as Nonfarm Payrolls (NFP) and ISM Manufacturing PMI for August, which will be released later this week. The impact of August economic data will be very significant as Federal Reserve (Fed) Chair Jerome Powell reiterated at the Jackson Hole Symposium that further policy action will be data-dependent.