Analyst: Market Expectations for Further Fed Rate Cuts Rise Ahead of Non-Farm Payrolls Data Release

According to sources, analyst Haresh Menghani stated that gold maintained a slight decline in the first half of the European session. Investors are cautious ahead of the highly anticipated release of US non-farm payrolls data, leading to a lack of strong selling pressure on gold. The key US employment data will provide clues to the Fed's rate-cutting path, impacting the short-term direction of the US dollar and potentially providing new momentum for gold. With risk aversion prevailing before the key data release, the US dollar continued its two-week uptrend, reaching a one-month high and exerting downward pressure on gold prices. However, the market's growing expectations of further Fed rate cuts, coupled with ongoing geopolitical uncertainties, continue to support gold as a safe-haven asset. This mixed fundamental backdrop has left traders hesitant to make new directional bets, resulting in a flat gold price trend and a range-bound pattern.

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