On Thursday (September 5th), at the end of the Asian market, spot gold suddenly rose rapidly in the short term, breaking through the $2500/ounce mark at one point and reaching a high of $2506.80/ounce. FXStree analyst Haresh Menghani wrote an article on Thursday analyzing the technical trend of gold prices.

Menghani pointed out that gold prices continue to receive support from the Federal Reserve's bet on a 50 basis point rate cut in September. The decline in US bond yields and the weakening of the US dollar also provided favorable conditions for gold.

The Job Openings and Labor Mobility Survey (JOLTS) released by the US Bureau of Labor Statistics on Wednesday showed that the number of job vacancies decreased from 7.91 million in the previous month to 7.67 million. The data is lower than the expectations of all surveyed economists. After the release of the JOLTS report, investors increased their bets on a significant interest rate cut by the Federal Reserve this month.

Menghani wrote that Thursday's US economic report, including the ADP Private Sector Employment Report, weekly initial jobless claims, and ISM Services PMI, will be seen as a short-term trading opportunity. The market trend seems to favor bullish traders.

At 20:15 Beijing time on Thursday, the ADP employment data for August in the United States will be released, with an expected increase of 145000 ADP employment in August. The ADP employment in the United States increased by 122000 in July, the smallest increase since January 2024.

At 20:30 Beijing time on Thursday, the seasonally adjusted initial jobless claims data for the week of August 31st in the United States will be released, expected to be 230000, compared to 231000 in the previous week.

At 22:00 Beijing time on Thursday, the August ISM Non Manufacturing Purchasing Managers' Index (PMI) for the United States will be released, expected to be 51.1, up from the previous value of 51.4.

Analysis of Gold Technology

Menghani pointed out that from a technical perspective, after the gold price rises above the psychological level of $2500/ounce, it may encounter resistance near the $2524-2525/ounce area, followed by a historical high (near the $2531-2532/ounce area touched last month).

Some subsequent buying orders will be seen by bulls as new triggers and lay the foundation for the recovery of the recently established upward trend in the positive oscillation signals on the daily chart.

On the other hand, Menghani added that the $2471-2470/ounce level area seems to have become an immediate strong support. If it falls below this region, gold prices may drop to the 50 day simple moving average (SMA), currently around $2435 per ounce.

If the gold price convincingly falls below the 50 day moving average, it may trigger some technical selling and target the 100 day moving average (around the $2386/ounce area), with some intermediate support around $2400/ounce in the process.