Gold (XAU/USD) extended its bullish momentum on Friday, reaching fresh three-week highs above $4,300, with market participants setting their sights on the mid-June highs in the $4,380 area [1]. The precious metal is on track for its strongest weekly performance since January, posting a nearly 7% gain for the week [1]. The rally follows a brief consolidation on Thursday and is supported by technical indicators, with XAU/USD trading at $4,315.19 after breaking a key downward trendline resistance from April highs earlier in the week [1].
Market attention is now focused on the upcoming July Nonfarm Payrolls (NFP) report, which is expected to influence gold's next move. The consensus forecast anticipates a net increase of 80,000 payrolls, up from 57,000 in June, though analysts from major banks such as Deutsche Bank are more cautious, projecting a smaller uptick of 65,000 [1]. Deutsche Bank notes that such a result would keep payroll growth below the 3- and 6-month moving averages, reflecting a gradual cooling in hiring momentum rather than a sharp deterioration [1].
Technical analysis highlights that while intraday Relative Strength Index (RSI) readings are overstretched, the daily RSI at 67 suggests there is still room for further appreciation [1]. The daily MACD remains in an upward trend, reinforcing the bullish outlook [1]. Key resistance levels are identified at the June 15 and 17 highs near $4,380, with further upside potential toward the late-May lows just ahead of $4,600 [1]. On the downside, support is seen at Thursday's low of $4,223, the broken trendline around $4,050, and the July 31 and August 3 lows near $4,000 [1].
No explicit market reactions or analyst opinions beyond the technical and NFP-related outlook are provided in the article [1].
CONCLUSION
Gold is experiencing a strong rally, reaching three-week highs and posting its best weekly performance since January, with further gains hinging on the outcome of the July Nonfarm Payrolls report. Technical indicators remain bullish, and key resistance and support levels have been identified. Market participants are closely watching the labor data for signals on gold's next direction.