The American dollar is seen to be strengthening since yesterday's New York trading session when there was a negative change in market risk sentiment as a result of concerns about the Chinese economy and the extension of geopolitical risks in the turbulent Middle East.
However, the insignificant strengthening of the American Dollar is due to market players' concerns about the risk of a recession in the American economy based on several economic reports from the beginning of this week.
The focus of market players will be on the economic data report in the American industrial sector, which is the "Global PMI" report tonight and the speech by Fed chairman Jerome Powell that will take place on Friday.
Market players now expect the Fed to cut interest rates by 50 basis points (bps) at the September 17-18 FOMC meeting.
Meanwhile, the drop in gold prices is expected to remain limited due to the ongoing tensions in the Middle East between Hamas and Israel.
Israel has recently expressed its refusal to withdraw its troops from the Philadelphi corridor on the Egypt-Gaza border, on Wednesday.
If the "Global PMI" data report that will be reported tonight increases the risk of an economic recession in America, it is seen to be capable of providing a new boost to the gold market.
Technical Analysis Based on the daily chart, the technical analysis shows that the buying "trend" is seen to still remain constructive, as well as showing the strength of buyers still in the market.
Therefore, any sudden drop in the price of gold is seen to provide an opportunity for market players to make purchases at the lowest (subjective) price. The $2,450 price level is the main focus of gold buyers.
However, if the gold price continues to be pushed above the $2,530 price level, the next focus will be on the $2,550 level before gold continues to look for a new high of $2,600.
