Gold Price Prediction: XAU/USD is unlikely to break out in any specific way

Gold traders are in for a concerned few days, as two key US data releases are poised to influence the monetary policy outlook and, by extension, the price of gold. The next US labor market and inflation data reports have the potential to cause volatility in the precious metals market.

Next week might be a difficult one for gold

The US labor market report is due today, with inflation statistics following next week. The unexpectedly strong second-quarter US GDP growth has recently prompted confidence that the US economy can avoid recession despite dramatically higher interest rates. If today's labor market data confirms this scenario, the gold price may begin to fall. This is because a recession increases the likelihood of the Federal Reserve cutting interest rates, which would help gold.

In contrast, next week's inflation figures are more likely to support the assumption that the Fed halted its rate rise cycle in July, leaving the door open to a rate rise. 

Overall, Gold might become volatile next week, though a sustained breakout to the upside or fall does not appear likely.