Key Points
- Spot gold holds at $3,547.41, up 2.9% for the week, nearing record high of $3,578.50
- Fed rate cut bets rise after soft U.S. ADP and jobless claims figures
- U.S. NFP data due Friday expected to show modest 75K job gain
- Traders eye Fed’s Sep 17–18 meeting for 25bps rate cut decision
Gold prices remained steady on Friday, but the broader momentum for the week was firmly bullish. Spot gold hovered near $3,547 while December futures traded around $3,608.90, supported by dovish shifts in Fed policy expectations and weakening U.S. economic indicators.
Markets received a double-dose of soft data this week: U.S. jobless claims exceeded expectations and the ADP private payrolls print missed forecasts, reinforcing the narrative of a cooling labour market.
All eyes now turn to Friday’s non-farm payrolls (NFP) report, which is expected to show just 75,000 new jobs—potentially clearing the path for the Fed’s first rate cut of the year.
The macro backdrop remains fertile for gold bulls. Fed officials this week hinted that labour weakness is sufficient grounds for policy easing, and traders are now pricing in a 25bps rate cut at the upcoming September 17–18 meeting.
Technical Analysis
Gold (XAU/USD) is trading at $3,547.41, up +0.05%, extending its bullish breakout. After months of consolidation between $3,300 and $3,400, price has surged above resistance, confirming a strong upside breakout.
The moving averages (5, 10, 30) are in a bullish alignment, with the shorter-term lines accelerating away from the longer-term trend: a sign of strong upward momentum.
The MACD histogram has turned decisively positive, with widening divergence between the MACD and signal lines, further supporting bullish momentum. Key resistance now sits at $3,600, while immediate support rests at the breakout zone of $3,400.
From a broader perspective, gold is benefitting from renewed safe-haven demand as traders react to weaker US economic data and a softer dollar.
If momentum continues, gold could retest $3,600 in the near term, but traders should also watch for a potential pullback to $3,400 to confirm this new support level.
Cautious Forecast
If the NFP surprises to the downside, gold could reclaim fresh highs above $3,600, extending the bullish rally.
However, any hawkish surprise or upside beat in jobs data may trigger profit-taking near record territory. Traders should monitor Fed commentary post-NFP for cues ahead of the September FOMC.
