Gold prices dipped in early Thursday trading but remain supported above $3,500, consolidating around this key psychological level and leaving scope for further upside. After reaching an all-time high in the previous session, the precious metal’s rally paused as calmer conditions in the bond market reduced demand for safe-haven assets and prompted profit-taking. Despite the pause, the outlook for bullion remains bullish. Expectations of a Fed rate cut in September are capping any upside for the US dollar, providing support for gold. At the same time, ongoing geopolitical turbulence, tariff-related uncertainty, and concerns over political interference in the Federal Reserve continue to underpin the safe-haven appeal of the metal. Against this backdrop, traders are now looking ahead to the release of US services PMI data later today and Friday’s Non-Farm Payrolls. Both sets of figures could shape expectations for the US economy and, if disappointing, may accelerate the pace of gold’s gains.
Ricardo Evangelista, ActivTrades
Source: ActivTrader
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