Gold trades just below $2,500 as risk recedes, markets are calm, and the US Dollar recovers marginally. Traders await US labor market data this week before determining their next moves. The $2,500 level is key from a technical perspective, and it is threatening to give way under bearish pressure. Gold edges lower into the $2,490s on Tuesday as a measure of market calm descends, which does little to drive up demand for safe-haven Gold.
If labor market data is decidedly under par, the chances of a bigger cut will increase, which in turn will give Gold a leg up on the charts. Lower interest rates are positive for the precious metal because they make it comparably more attractive to investors as a non-interest-paying asset. Technical Analysis: Tests base of mini-range Gold is testing the base of the mini-range it has been trading in since late August, between $2,500 and $2,531.