Gold (XAUUSD): Set up for Near-Term Drive into $3351.08 if $3228.38 holds as Support

Gold Prices Edge Higher Ahead of Key U.S. Jobs Report

Gold is moving slightly higher in Friday trading, as bargain hunters stepped in following a successful test of the $3164.23–$3228.38 support zone. After touching a session low of $3201.95—within the key Fibonacci retracement range—bulls are eyeing a potential push toward the minor pivot at $3351.08, contingent on today’s U.S. non-farm payrolls (NFP) report providing bullish momentum.

At 12:06 GMT, XAU/USD is trading $3261.80, up $23.50 or +0.73%.

Technical Levels in Focus as Gold Attempts Rebound

Price action remains technically constructive after holding above the 50% retracement at $3228.38. A sustained break above this level opens the door for a run toward $3351.08.

Conversely, failure to maintain support risks a pullback toward the 61.8% level at $3164.23, with deeper selling pressure targeting the 50-day moving average near $3087.25.

The recent low has sparked buying interest, suggesting market participants are still positioning for longer-term upside, especially near technical inflection points.

U.S.-China Trade Sentiment Weakens Gold’s Safe-Haven Appeal

Hopes for renewed U.S.-China trade negotiations have lifted overall risk sentiment and capped gold’s upside. Beijing signaled openness to tariff talks, with Washington also expressing willingness to return to the table. Saxo Bank’s Ole Hansen noted improved risk appetite could reduce gold’s immediate appeal as a haven, though long-term investors continue to accumulate on weakness.

NFP Report Holds Market’s Focus for Fed Policy Clues

The U.S. jobs report due at 1230 GMT is a critical data point, with expectations centered around a 130,000 job gain. However, risks skew to the downside following elevated weekly jobless claims and slowing job openings.

A disappointing print could validate concerns about labor market softening tied to trade frictions and immigration policy. Sector-specific weakness in transportation, warehousing, and construction may offer clues about the broader economic picture.

Gold Prices Forecast: Bullish Bias Hinges on Jobs Data Reaction

Gold remains in a short-term consolidation zone, but technical support is holding firm. If the NFP report misses expectations and fuels recession concerns, expect renewed demand for gold as a hedge, which could drive prices toward $3351.08 and beyond.

However, a strong jobs report may reinforce Fed patience and dampen safe-haven bids, pressuring gold below $3228.38. For now, the bias is cautiously bullish, with upward momentum likely to build if macro data confirms economic headwinds.

More Information in our Economic Calendar.