Gold above $2,460 as traders await US labor data
US Nonfarm Payrolls are expected to show 176,000 new jobs in July, a crucial data point for the Fed

Policy divergence between the Fed and ECB may strengthen the Dollar and weaken EUR/USD
WTI crude rose to $76.50 amid Middle East tensions
Market expects 4.1% unemployment and 3.7% wage growth decline today
US Dollar
The US Dollar has gained strength, recovering from its post-Fed dip. This rebound follows the Federal Reserve's decision to hold interest rates steady while acknowledging that inflation remains "somewhat" high.
EUR/USD
The divergence in monetary policies between the Federal Reserve and the European Central Bank is likely to persist, with both institutions expected to lower rates soon. However, recent US economic data has highlighted potential risks to the anticipated soft landing, mirroring some slowing momentum in the Eurozone's recovery. This scenario could lead to a stronger Dollar and potential further declines in the EUR/USD exchange rate.
Gold Market
Gold prices have moved up to nearly $2,460. This increase comes as traders look ahead to key US labor market data, including the Nonfarm Payrolls and Average Hourly Earnings for July.
Recent economic data has heightened concerns about the US economy, boosting demand for gold as a safe haven. The ISM Manufacturing Purchasing Managers Index (PMI) dropped to 46.8 in July, an eight-month low, down from 48.5 in June and below the expected 48.8. Additionally, US Initial Jobless Claims for the week ending July 26 rose to 249,000 from 235,000, surpassing the forecasted 236,000.
Oil Market
West Texas Intermediate crude oil prices edged higher during Friday's Asian session, reaching around $76.50 per barrel. This uptick is largely attributed to supply concerns stemming from rising geopolitical tensions in the Middle East.
Market participants are closely monitoring the geopolitical news.
Upcoming Key Event
Today's primary focus is the release of the Nonfarm Payrolls data from the US, following the recent Federal Open Market Committee decision. The state of the labor market is becoming increasingly crucial in the Fed's policy decisions. Should the labor market data reveal a sharper-than-expected slowdown, the Fed might consider accelerating the pace of interest rate cuts.
Expectations are set for an increase of 176,000 new jobs in July, compared to 206,000 in June. The unemployment rate is projected to remain steady at 4.1%, while year-over-year wage growth is anticipated to slow to 3.7%. These projections suggest a cooling labor market with diminishing wage inflation pressures.