Gold Steady Near Highs on Weak US Jobs Data & Dollar Dip.
Gold holds steady near recent highs, supported by weaker-than-expected U.S. Nonfarm Payrolls data and continued softness in the U.S. Dollar
FUNDAMENTAL OVERVIEW:
Gold (XAU/USD) begins the week cautiously, trading flat to slightly higher on Monday as the US Dollar steadies but stays pressured after Friday’s weaker-than-expected Nonfarm Payrolls (NFP) data. The metal hovers around $3,375 during U.S. hours, recovering from a $3,345 low amid fragile market sentiment and shifting Fed rate cut expectations.
July’s disappointing jobs report has boosted the likelihood of a Fed rate cut in September, reversing last week’s more hawkish tone after the central bank kept rates unchanged.
Still, Gold’s upside remains capped as US Treasury yields have steadied following Friday’s decline, weighing on demand for the non-yielding asset. Meanwhile, market caution deepens amid political controversy after President Trump abruptly dismissed BLS Commissioner Erika McEntarfer, accusing her of manipulating employment data without offering proof.
Trump’s allegations—framed as politically motivated—have drawn backlash from economists and former officials, sparking concerns over the reliability of future US data and institutional independence. This uncertainty is providing some support to Gold by limiting downside risks.
GOLD TECHNICAL ANALYSIS CHART:
Technical Overview:
Gold is trading within an up channel.
Gold is moving above all the Moving Averages (SMA).
The Relative Strength Index (RSI) is in Buying Zone, while the Stochastic oscillator suggests Neutral trend.
Immediate Resistance level: 3384.56
Immediate support level: 3306.95
HOW TO TRADE GOLD
Following a strong rally, Gold encountered resistance and entered a corrective phase, forming lower lows. Recently, it rebounded from a key support zone, displaying renewed bullish momentum. Having broken through the resistance area, Gold is now seeking a potential pullback. If it holds above this critical level, further upside is likely.
TRADE SUGGESTION- LIMIT BUY – 3322.21, TAKE PROFIT AT- 3384.56, SL AT- 3294.29.