The Dollar recovery has struggled to gain momentum as markets increasingly price in the imminent start of the Federal Reserve’s rate-cutting cycle. This shift in expectations has helped limit losses for gold, keeping the yellow metal buoyed despite broader market volatility. Recent economic data has fueled these expectations, with the US Department of Labor reporting a rise in Initial Jobless Claims to 232,000 for the week, up from 228,000 in the previous period. Additionally, a revision of employment data revealed that US employers added 818,000 fewer jobs than initially reported over the past year. These figures follow the release of the minutes from the Federal Open Market Committee (FOMC) meeting, which highlighted a growing consensus among policymakers to consider rate cuts in response to progress in reducing inflation.
XAU/USD: Bullish Trend Remains Intact, Key Resistance at $2,770 and $2,800 Technically, the yellow metal found support at the upper boundary of its previous range, around $2,744, providing a solid foundation for a potential recovery. Despite recent pullbacks, the short-term trend for gold remains bullish, in line with the adage, “the trend is your friend,” favoring long positions. If gold prints a few more bullish candlesticks, the price could rise toward the $2,770 region, approaching its all-time high and the upper edge of its trend channel. A decisive breakout above this level could attract additional buyers, potentially driving the price to the key psychological resistance at $2,800. However, the Average True Range (ATR) indicator on the 4-hour chart has shown a significant bearish shift, suggesting that gold could dip below the $2,700 mark if the downside pressure intensifies.
