On Friday (August 2nd), both gold and silver prices showed strong upward momentum. The spot gold price has risen sharply during the European session and is currently stable at around $2465 per ounce, with a intraday increase of nearly $20. And spot silver is not to be outdone, with a daily increase of nearly 1.5% and a price hovering below $29.00 per ounce.

Driven by the current safe haven sentiment, the price of gold, as a traditional safe haven asset, has received significant support. The dovish stance of the Federal Reserve and the unfavourable position of the US dollar and US treasury bond yields have provided impetus for the rise of gold. Meanwhile, the tense situation in the Middle East and the uncertainty of the US economy further enhance the attractiveness of gold.

Today's market focus is on the July non farm payroll report in the United States. According to a survey by a well-known institution, the market generally expects an increase of 175000 jobs in July, lower than the 206000 jobs in June. If the data shows weakness, it may further support the expectation of a 50 basis point rate cut by the Federal Reserve in September, providing new upward momentum for gold prices.

From a technical perspective, the 14 day relative strength index (RSI) of spot gold is currently around 61.75, indicating that the risk of an upward trend in gold prices still exists. If the daily closing price of gold can exceed the previous record high of $2450 per ounce, it is expected to continue its upward trend.

Senior analyst Dhwani Mehta pointed out that if non farm employment data and wage inflation perform poorly, gold prices are expected to hit historical highs. She emphasized that the daily closing price of gold needs to be above $2450 per ounce to maintain its upward momentum. At the same time, she also reminded investors that if the employment data is better than expected, it may cause the gold price to significantly retreat to the support level of $2425 per ounce.

Considering the current market sentiment and the upcoming non farm payroll report, investors should closely monitor the market's reaction after the data is released. If the data is weak, it is expected that the gold price will test the high of $2475/ounce on July 18th and may further explore $2484/ounce. However, if the data is better than expected, gold prices may fall back to $2425 per ounce, or even lower to the 21 day simple moving average (SMA) of $2410 per ounce.

For the silver market, a well-known financial news website analyzed that as long as the silver price remains above $28.55 per ounce, the bullish outlook remains. The target price is $29.30 per ounce, and if it breaks through, it will further increase to $30.06 per ounce. However, if the silver price falls below $28.55 per ounce, it may turn bearish, with support at $28.50 per ounce.