Gold (XAUUSD) remains weak as US Dollar strength and expectations of higher US interest rates continue to pressure prices. Investors are closely watching geopolitical developments and awaiting the US Nonfarm Payrolls report for fresh signals on the labor market. Markets will also focus on comments from Federal Reserve Chairman Kevin Warsh for further guidance on interest rates. The next move in gold will likely be driven by developments in the labor market, interest rate expectations, and broader market sentiment.
Gold Price Falls as Markets Await NFP Data and Fed Guidance
Gold continues to trade lower as strong demand for the US Dollar keeps prices under pressure. The US Dollar remains on track for its strongest monthly performance in almost a year. Investors remain cautious despite signs of easing tensions in the Middle East. This shift has reduced demand for gold and kept prices under pressure.
Geopolitical developments continue to attract attention. The United States and Iran exchanged military actions over the weekend and later accused each other of violating the recently agreed ceasefire. However, the two countries subsequently agreed to suspend further attacks and return to negotiations in Qatar. Investors continue to seek safety in the US Dollar while awaiting further clarity, keeping pressure on gold prices.
Markets expect the Federal Reserve to maintain a restrictive policy stance. Expectations for at least two interest rate hikes before year-end continue to support the US Dollar and pressure gold. Attention now turns to the US Nonfarm Payrolls report for fresh clues on the labor market. Markets will also watch the European Central Bank forum in Sintra, where Federal Reserve Chairman Kevin Warsh is expected to provide further policy guidance after his recent hawkish remarks.
Gold Price Correction Brings Key Technical Support Into Focus
The gold chart below shows a major horizontal resistance zone that capped advances for many years. Gold failed to close above this barrier on several occasions, while multiple rounded bottom formations developed beneath it. These formations reflected repeated accumulation as momentum gradually improved. The extended period of compression emphasized the significance of this resistance before the eventual breakout.
After the breakout, gold entered a strong bullish phase and advanced within a large rising broadening wedge. Price continued to record higher highs and higher lows as it respected the wedge structure. The rally gained momentum into early 2026, driving prices to a new record high. The sustained advance reflected strong upside momentum following the breakout from the long-term base.
Recently, gold has entered a corrective phase after reaching its peak. Price has moved lower and is now trading near the lower boundary of the rising broadening wedge. This trendline remains an important technical support. Holding above this level could keep the broader uptrend intact. However, a decisive break below the wedge support could extend the current decline.
Gold Forecast: US Jobs Data and Fed Commentary to Drive the Next Move
Gold stays under pressure as markets continue to price in higher US interest rates and a stronger US Dollar. Investors now look to the US Nonfarm Payrolls report and comments from Federal Reserve Chairman Kevin Warsh for fresh policy signals. From a technical perspective, gold is correcting within a long-term rising broadening wedge and is approaching an important support trendline. Price action around this support could play a key role in determining the next move in gold.
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