Gold has fallen to near $2,340. What lies ahead could move prices. — TradingView News

The jobs figures due Friday could provide some guidance on the path of Federal Reserve interest rates. And that could inject volatility into gold.

• Gold XAUUSD July started off smoothly, trading sideways around $2,340. However, what lies ahead could bring some much-needed volatility for gold lovers to seize trading opportunities. It’s jobs week, and on Friday, markets will get a sense of where the U.S. economy is headed. A cool summer breeze is expected to sweep through the labor force.
• In other wordsAnalysts are expecting 189,000 people to join the labor force in June. That number will have a big influence on the trajectory of the economy because it will help guide the Fed’s rate-cutting policies. A number that matches or falls short of expectations will increase the likelihood of lower borrowing costs. And vice versa: A positive number will push out the prospect of rate cuts even further.
• What is the role of gold? So what’s in it for you? Gold is a non-yielding asset, meaning it doesn’t generate passive income, unlike the U.S. dollar, which is tied to the level of interest rates. When rates are falling (or are expected to fall), gold’s attractiveness as an investment increases because the opportunity cost of a low-rate environment is reduced. In this context, watch for elevated volatility this Friday.