Gold Prices Hold Key Support Despite Decline Amid Rate Hike Speculation
• Gold prices fell by $43 (0.95%) on Friday, September 4, 2026, following the release of the U.S. Labor Department's non-farm payroll report, which showed 162,000 jobs created in August, far exceeding forecasts of 55,
• This report increased the likelihood of a Federal Reserve rate hike in September to 65%, up from 55% before the data release. Despite the decline, gold futures managed to hold above the critical support level of $4,474, which aligns with the 100-day moving average and the 38.2% Fibonacci retracement. Analysts suggest that gold remains in a bullish third wave, with potential for higher prices in the coming months.
Impact & Risks
The stronger-than-expected jobs report has heightened market expectations for a Federal Reserve rate hike, which could increase borrowing costs and impact gold prices. However, gold's ability to maintain its key support level suggests resilience and potential for further gains. Investors in gold and related markets should remain cautious, as the Federal Reserve's decisions and economic data releases could lead to increased volatility. Silver, in contrast, faces a less certain outlook, with technical indicators showing potential for further declines.
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