On Tuesday (August 31), international gold prices regained strength, as the US dollar index fell to a new low of 92.526 since August 16. The market outlook for the gold price is still up to US$1,860. Investors are looking forward to US non-agricultural employment data, and the report may be the key to the Fed’s decision to cut debt purchases.

After Fed Chairman Powell delivered a speech at the Jackson Hole Annual Economic Conference last Friday, the price of gold rose in early trading on Monday. Powell said that the Fed may reduce its bond purchase plan this year, but did not give an exact timetable for the start of the reduction, which pushed the price of gold higher. However, the price of gold subsequently fell as the US dollar, which fell to a low in nearly two weeks after Powell’s speech, began to rebound.

Kitco Metals senior analyst Jim Wyckoff said that the market is beginning to feel that there will be some reduction in bond purchases this year, but it may not be as alarming. However, Wyckoff said that the cautious sentiment before the release of the U.S. non-farm payroll report on Friday may be a drag this week, and the strong data may give hawkish Fed officials more influence in advocating the withdrawal of ultra-loose monetary policy. Loretta Mester, chairman of the Cleveland Federal Reserve Bank of the United States, said on Monday (August 30) that the US economy is recovering strongly, but she still does not believe that the recent inflation readings are sufficient to achieve the price stability target adjusted by the Fed a year ago.

The US August non-agricultural employment report will be released this Friday (September 3). The market is expected to add 750,000 jobs, the unemployment rate will fall from 5.4% to 5.2%, and the average hourly wage rate is expected to remain unchanged at 4%.

The National Bureau of Statistics of China and the Federation of Logistics and Purchasing (CFLP) jointly announced on Tuesday that the leading macroeconomic indicator-August's official manufacturing purchasing managers index (PMI) fell to 50.1, slightly lower than the survey’s median estimate of 50.2, indicating The manufacturing expansion has weakened.

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