• Gold prices fall during a quiet North American session with US markets closed for Labor Day.
• Upcoming US economic reports — ISM PMIs, JOLTS job openings, ADP Employment Change, and Nonfarm Payrolls — set to influence Fed rate decision.
• Fed Chair Powell at Jackson Hole noted that inflation was easing but increasing employment risks, raising recession concerns.
• Geopolitical tensions linger as President Biden may propose a ceasefire deal between Israel and Hamas, potentially affecting markets.

Gold prices dipped during the North American session amid thin volumes due to US markets being closed during Labor Day observance. Conversely, the Greenback remains firm as traders brace for a jobs report that could influence the Federal Reserve's decision on the size of September’s rate cut. The XAU/USD trades at $2,499, down by 0.14%.

The US economic docket will be busy this week with the release of the Institute for Supply Management’s (ISM) Manufacturing and Services PMIs, JOLTS job openings, the ADP National Employment Change, and the Nonfarm Payrolls (NFP) figures.

During his speech at Jackson Hole, Federal Reserve Chairman Jerome Powell commented that the risks of inflation are skewed to the downside, while the employment risks are tilted to the upside.

Last Friday, the Fed’s preferred inflation gauge, the Core Personal Consumption Expenditures Price Index (PCE), remained unchanged at around 2.5%, hinting that inflation remains controlled. On the other hand, during the last four NFP reports, the Unemployment Rate has risen from around 3.8% to 4.3%, spurring fears among Fed officials that the labor market could be cooling faster than expected.