Gold rebounds near $4,070 as traders await US jobs data
Gold recovered most of its early losses, trading around $4,070-$4,075 ahead of the US non-farm payroll report, while the dollar steadied and market participants watched inflation and policy cues.
Gold (XAU/USD) regained much of its early intraday decline, hovering near $4,070-$4,075 during the first half of Friday’s European session. The US dollar continued its recovery from Thursday’s lows, applying modest downward pressure on the metal. A hawkish stance from the US Federal Reserve also contributed to the pullback from the two-week high reached the previous day.
Traders are awaiting the US non-farm payrolls report, which is expected to show an addition of 65,000 jobs in October and a steady unemployment rate of 4.2%. Average hourly earnings will also be watched for signs of wage-growth pressure that could affect Fed policy expectations. These data are likely to increase market volatility and influence demand for the dollar, which in turn could affect gold prices.
The market also noted that a Democratic sweep in recent US midterm elections raised concerns about artificial-intelligence development, prompting a shift toward safe-haven assets such as US Treasury bonds. Meanwhile, rising crude-oil prices revived inflation concerns, and traders are pricing roughly a 70% probability of another Fed rate hike at the December meeting, which supports the dollar and limits further declines in US bond yields.
Geopolitical tension remains as US President Donald Trump said the United States may need to take further action against Iran, adding to the safe-haven appeal of the dollar. Despite these headwinds, gold stays above the $4,000 psychological level and appears positioned for a possible gain after three weeks of decline.
Technical analysis shows the XAU/USD pair above the 50.0% Fibonacci retracement at $4,006 and the 38.2% level at $4,039, though a slide below the 100-period EMA on the 4-hour chart suggests caution. The RSI at 52.40 indicates neutral momentum, while the MACD remains positive, implying that bullish pressure may be pausing rather than reversing. A break below $4,039 could open the path to deeper support near $4,006, whereas resistance lies at $4,080, with a sustained move above that potentially targeting the recent high around $4,146.