Gold News: Bullish Momentum Builds as NFP, Fed Rate Cut Hopes Drive Gold Rally

Gold rallies from key support zone—$3435 in sight?

Gold prices edged higher Thursday as traders bought dips above the support band between $3277.91 and $3310.48. The rebound sets a bullish tone going into Friday’s U.S. jobs report, with upside room to challenge the May 6 high at $3435.06.

A break above that level could bring the $3500.20 top into focus. The 50-day moving average, currently at $3256.60, continues to underpin the rally, reinforcing the short-term bullish bias.

At 12:27 GMT, XAUUSD is trading $3394.42, up $21.97 or +0.65%.

Silver breaks out while gold holds firm—rate cut hopes build

While gold remained rangebound for most of Thursday’s session, silver surged above the $35 per ounce mark for the first time since October 2012. Traders are largely in a wait-and-see mode ahead of Friday’s nonfarm payrolls, but the broader backdrop favors gold bulls.

“The path of least resistance remains to the upside,” said Ricardo Evangelista of ActivTrades. He added that a weak labor print would likely boost expectations for Fed rate cuts, which is typically positive for gold.

ADP data disappoints—market sees Fed pivot potential

Wednesday’s ADP report showed U.S. private payrolls grew by just 37,000 in May—well below the 110,000 forecast. Combined with weaker-than-expected ISM services data (49.9 vs. 52.1 est.), the soft labor signals have prompted a reassessment of the Fed’s policy outlook.

President Trump also renewed calls for rate cuts, adding political pressure on the central bank. Gold tends to benefit in a low-yield environment, making incoming economic data pivotal for price direction.

Yields drop as weak data lifts gold’s appeal

U.S. Treasury yields retreated for a second straight day. The 10-year note fell more than 2 basis points to 4.336%, while the 2-year yield dipped to 3.86%. The 30-year bond yield fell over 4 basis points to 4.845%.

This followed Wednesday’s sharp yield slide after disappointing ADP and services data. With April trade data and initial jobless claims on tap, traders remain focused on bond market signals for clues on Fed policy shifts.

Gold prices forecast: Bullish outlook into NFP-driven week close

With price action moving higher off a strong support zone and the technical setup pointing north, the gold market retains a bullish near-term outlook. Soft labor data and falling Treasury yields are boosting the case for a more dovish Fed later this year. If Friday’s NFP confirms labor market softness, gold could push past $3435 and test $3500. Until then, the path of least resistance remains higher.

More Information in our Economic Calendar.