Gold remained steady near the USD 2,500 level and continued to trade within a range for several days.
Investors could remain cautious as they monitor any potential moves by the Federal Reserve on interest rates and changing expectations following recent economic data.
The latest U.S. jobs report showed fewer jobs added than expected with significant downward revisions for June and July while the unemployment rate dipped to 4.2% from 4.3% in July.
This mixed report limited the likelihood of a 50 basis point rate cut, though the Fed is still expected to cut rates by 125 basis points overall this year. Consequently, gold prices may remain range-bound as market participants await further developments.
Attention now turns to the upcoming U.S. inflation report. Lower-than-expected inflation could increase the chances of larger rate cuts, which would likely benefit the precious metal. At the same time, economic challenges in both the U.S. and China, along with the upcoming U.S. elections, may continue to support gold as a safe-haven asset.
