Gold price remains capped below $2,500 on firmer US Dollar

• Gold price edges lower in Wednesday’s early Asian session. 
• The escalating Middle East geopolitical tensions and firmer Fed rate-cut expectations might cap the Gold’s downside. 
• JOLTS Job Openings and Fed Beige Book are due later on Wednesday. 

The Gold price (XAU/USD) bounces off the multi-day lows but remains below the $2,500 barrier amid the renewed bid bias in the US Dollar (USD) on Wednesday. However, the ongoing geopolitical risks and imminent Federal Reserve (Fed) rate cuts might underpin the yellow metal in the near term. 

Later on Wednesday, JOLTS Job Openings and Fed Beige Book will be released. Investors will closely monitor the highly-anticipated US August Nonfarm Payrolls (NFP) on Friday, which could determine the size and pace of the potential rate cut by the Federal Reserve's September policy meeting. If the report shows weaker than expected reading, this could fuel speculation about a US recession and faster Fed rate cuts. This, in turn, could further boost the precious metal as lower interest rates reduce the opportunity cost of holding non-yielding gold. 

Daily Digest Market Movers: Gold price loses ground amid firmer US Dollar

• "We see evidence that speculative positioning in gold is effectively maxed out for the time being. I think the level to which gold is seeing pressure from the rise in the dollar reflects our view on positioning," said Daniel Ghali, commodity strategist at TD Securities.
• The US ISM Manufacturing PMI rose to 47.2 in August from an eight-month low in July at 46.8. This figure was below the market consensus of 47.5. 
• Traders raised the chance of a more aggressive half-point reduction to 39%, up from 31% before the US ISM Manufacturing PMI report, according to the CME Group’s FedWatch measure.
• The US JOLTS Job Openings are expected to be 8.10 million, down from 8.184 million in June.
• The US ISM Services PMI is projected to ease to 51.4 in August from 51.1 in July. 

Technical Analysis: Gold price keeps the bright picture in the longer term

The Gold price trades in negative territory on the day. The precious metal maintains a bullish trend on the daily chart as the price is above the key 100-day Exponential Moving Average (EMA) and reinforced by the 14-day Relative Strength Index (RSI), which stands above the midline. 

The crucial upside barrier for the yellow metal emerges at the $2,530-$2,540, representing the five-month-old ascending channel’s upper boundary and the all-time high. Sustained trading above this level could pave the way to the $2,600 psychological mark. 

On the other hand, the immediate support level to watch is $2,470, the low of August 22. A breach of the mentioned level could see a downward move back towards $2,432, the low of August 15. Extended losses will see a drop to $2,377, the 100-day EMA.