Gold price seems fragile above 1,930.00
Gold price (XAU/USD) looks supported above the immediate support of $1,930.00, but the downside seems favored as the United States labor market data arrives more resilient than expectations. Stellar additions to private payrolls in July indicate that the Nonfarm Payrolls (NFP) report should outperform consensus on Friday. Additionally, Federal Reserve (Fed) policymakers may now consider a continuation of the rate-tightening cycle at its September policy meeting.
Strength in the US Dollar Index backed by a cautious market mood due to the Fitch downgrade also builds pressure on the Gold price. Apart from that, weak Gold demand reported by the World Gold Council (WGC) is consistently building pressure on the Gold price. Meanwhile, investors await ISM Services PMI data for further guidance. Gold price consolidates in a narrow range above the crucial support of $1,930.00. The precious metal faced selling pressure on Wednesday after slipping below the 20 and 50-day Exponential Moving Averages (EMAs). The yellow metal delivered a breakdown of the Head and Shoulders chart pattern, which confirms a bearish reversal. A decisive breakdown below $1,930.00 would expose the asset to the sound-level support of $1,900.00.