In Asian trading on Tuesday, spot gold prices continued their downward trend, hovering around $2,495 per ounce. Investors are bracing for the release of key U.S. economic data, including the ISM Manufacturing Purchasing Managers’ Index (PMI), which is expected to impact the gold market.
On Monday, spot gold closed down 0.14%, settling at $2,499.58 per ounce after trading between $2,489.86 and $2,507.33 per ounce.
This week is packed with significant U.S. economic reports, including ISM Manufacturing and Services PMI, JOLTS Job Openings, ADP Employment Change, and Non-Farm Payrolls data. At 22:00 GMT on Tuesday, the U.S. ISM Manufacturing PMI for August will be released, with forecasts suggesting a rise to 47.8 from 46.8 in July.
Analysts suggest that if the PMI reading exceeds 50, signaling an expansion in manufacturing activity, it could strengthen the U.S. dollar and exert downward pressure on gold prices.
According to FXStreet analyst Christian Borjon Valencia, the trend for gold has turned bearish, with the Relative Strength Index (RSI) showing a downward slope, indicating further downside potential in the short term.
If gold remains below $2,500 per ounce, the next support level is at the August 22 low of $2,470. A break below this level could push prices toward the August 15 volatility low and the 50-day simple moving average in the $2,424–$2,431 range.
Conversely, if gold rises above $2,500 and holds that level, the next resistance is the all-time high of $2,531 per ounce, followed by $2,550. Should these levels be surpassed, gold could aim for $2,600 per ounce. 
