Image Source: Pixabay
 

Gold (XAUUSD) is climbing on Dollar weakness and mounting signs of a slowing economy. Renewed expectations of Federal Reserve rate cuts have pressured the Dollar, while weaker economic data, including the ISM Manufacturing PMI, highlight slowing industrial momentum. This environment has pushed Treasury yields lower and revived demand for gold, supporting its rebound toward recent highs. With key labor data approaching and geopolitical risks still present, gold continues to benefit from safe-haven demand and a firm technical structure.

Gold Rises on Weak Dollar and Slowing Economic Data
 

Gold is regaining upside momentum and edging back toward recent highs. A broadly weaker US Dollar has revived demand, with renewed expectations of Federal Reserve rate cuts weighing on the currency. At the same time, softer economic signals point to slowing momentum in the US economy. This environment continues to favor non-yielding assets like gold and supports the ongoing rebound.

Market focus shifted back toward slowing US growth signals, setting the stage for renewed support in gold prices. In particular, the case for policy easing gained traction after the US ISM Manufacturing PMI printed at 47.9, underperforming expectations. This weaker reading highlighted slowing momentum in the industrial sector. As a result, Treasury yields moved lower, easing a key pressure point for gold. This decline in yields renewed gold’s appeal and contributed to its upward momentum.

Attention now turns to upcoming US labor market data, including ADP Employment Change and JOLTS Job Openings ahead of the Nonfarm Payrolls report. Signs of cooling labor conditions could further pressure the Dollar and extend gold’s upside. However, stronger employment data may slow momentum and trigger short-term consolidation. Markets continue to downplay geopolitical tensions, particularly around the US-Venezuela situation. Still, any escalation could trigger renewed safe-haven flows into the Dollar and limit gold’s upside.

Gold Holds Rising Support within Ascending Channel Structure
 

The gold chart below shows a well-structured ascending channel that has steadily guided price action higher in recent months. Price continues to hold above rising support, reflecting strong control by buyers. Each pullback has found demand near the lower boundary of the channel, signaling continued confidence in the upward move. This behavior indicates that the uptrend remains intact, with current corrections appearing constructive rather than indicative of exhaustion.
 

Gold recently rebounded after retesting the lower boundary of its ascending channel. The recovery was swift and decisive. Price found support at the trendline and rebounded toward the middle of the channel. This response shows strong underlying momentum. It also reflects disciplined buying during pullbacks, which has been a consistent feature of the broader trend.

In recent weeks, gold has seen a series of short-term consolidations that allowed momentum to reset without breaking the trend. These pauses appear constructive, not corrective. The absence of volatility on pullbacks indicates that bullish sentiment remains intact. As long as gold holds above rising support, the technical outlook remains positive. This opens the door for a renewed push toward the upper boundary and potential fresh highs.

Gold Outlook: Technical Strength Aligns with Macro Tailwinds
 

Gold remains supported by a weaker US Dollar, falling yields, and growing expectations of Fed rate cuts. Softer economic data continues to drive demand for safe-haven assets. While geopolitical risks stay in the background, any escalation could shift sentiment. Technically, the uptrend remains intact with price holding above rising support. If this structure holds, gold may continue its rebound and test higher levels ahead. 

More By This Author:

Gold Maintains Uptrend On Fed Easing Bets And Geopolitical Risk
Gold Retreats From Highs But Fed Policy And War Risk Keep Demand Elevated
Gold Holds Steady As Economic Weakness And Fed Outlook Support Upside