Gold (XAU/USD) holds firm on Friday but lacks upside momentum as traders digest mixed US Employment data while keeping a close eye on geopolitical developments in the Middle East. At the time of writing, XAU/USD is trading around $4,714, hovering below the two-week high of $4,764 touched on Thursday.
Data released by the US Bureau of Labor Statistics (BLS) showed that Nonfarm Payrolls (NFP) increased by 115K in April, beating market expectations of 62K but slowing from March’s 185K gain (revised from 178K). Meanwhile, the Unemployment Rate held steady at 4.3%, in line with market expectations.
Average Hourly Earnings rose 0.2% MoM in April, missing expectations of 0.3% and matching the previous reading. Annual wage growth accelerated to 3.6% from 3.4%, though it remained below the 3.8% forecast.
The metal remains on track for its first weekly advance in three weeks, drawing support from a weaker US Dollar (USD) and easing Oil prices amid cautious optimism that the US and Iran could reach a deal to end the war. However, tensions flared again on Thursday after both sides reportedly exchanged fire near the Strait of Hormuz.
Despite the renewed hostilities, US President Donald Trump downplayed the latest escalation. “The ceasefire is going. It’s in effect,” Trump told ABC News.
At the same time, Trump retaliated with fresh warnings toward Tehran as Washington awaits Iran’s response to the latest US proposal. “We’ll knock them out a lot harder, and a lot more violently, in the future, if they don’t get their Deal signed, FAST!” Trump wrote on his Truth Social platform.
While Oil prices have pulled back from recent highs, they remain elevated amid ongoing supply disruptions through the Strait of Hormuz, a key shipping route that carries nearly 20% of global Oil flows.
This continues to keep inflation risks in focus, limiting upside attempts in the non-yielding metal as markets increasingly expect major central banks, particularly the Federal Reserve (Fed), to keep interest rates higher for longer. Chicago Fed President said on Friday that the latest US jobs report appears “fairly steady,” adding inflation “remains high and is moving in the wrong direction.”
Technical analysis: XAU/USD trades within expanding Bollinger Bands as volatility builds
On the daily chart, XAU/USD tests the 20-day Simple Moving Average (the Bollinger middle band) around $4,695 while maintaining a constructive near-term bias, keeping the uptrend from recent lows intact as volatility bands continue to expand.
The Relative Strength Index near 52 suggests moderately positive momentum without overbought conditions, and a subdued Average Directional Index around 20 indicates a trend that is present but not strongly directional, leaving room for extended swings within the broader bullish structure.
On the topside, immediate resistance emerges at the upper Bollinger Band near $4,882, with a more strategic barrier at the psychological $5,000 mark, where sellers could attempt to reassert control.
On the downside, initial support is located at the mid-Bollinger band around $4,695, ahead of the lower band near $4,509; a deeper pullback eyeing the horizontal floor at $4,350 would be needed to seriously challenge the prevailing upward bias.
(The technical analysis of this story was written with the help of an AI tool.)
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