Gold Stabilizes at $2350 Amid Rate Cut Speculation and Market Adjustments

Gold prices found support at $2350 per ounce yesterday after a selloff erased Friday’s gains. On Friday, gold peaked at $2393 per ounce as the market reacted to the US jobs report and adjusted expectations for a rate cut.

Last week, weak US economic data led to significant downward revisions of last month’s Non-Farm Payroll (NFP) figures, increasing the probability of a 25-basis point rate cut in September from 60% to 77%.

As markets navigate medium- and long-term trends, gold remains a central focus. Based on Friday’s response, could a rate cut be the key catalyst for gold to break through the $2400 per ounce mark and maintain levels above it?

Historically, gold prices perform better with low interest rates. Given the current rate environment, it is surprising that a deeper price correction hasn’t occurred this year. This suggests that gold could move above $2400/oz once the Federal Reserve starts cutting rates.