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Gold (XAUUSD) is attempting to recover after a recent dip, supported by weak U.S. labor data and growing rate cut expectations. The ADP and JOLTS reports signaled softening employment conditions, pushing markets to price in further Fed easing. Trump’s latest comments added to the dovish sentiment. At the same time, geopolitical tensions and global market instability are fueling demand for safe-haven assets. This backdrop is helping gold maintain its upward momentum.
 

Gold Strengthens on Weak Jobs Data and Rising Rate Cut Bets

Gold is showing renewed strength after rebounding from recent lows, supported by shifting macroeconomic and geopolitical conditions. The latest recovery follows a sharp shift in market sentiment triggered by weak U.S. employment data and escalating global tensions. January’s ADP report showed private employers added just 22,000 jobs, well below expectations. Meanwhile, JOLTS data revealed a decline in job openings, and weekly jobless claims climbed to 231,000, exceeding forecasts. These signs of labor market weakness have increased the likelihood of Fed rate cuts, boosting demand for gold.

Additionally, President Trump’s recent remarks have added to the dovish outlook for Fed policy. He clarified that he would not support any Fed nominee who favors rate hikes, which strengthened market expectations for policy easing. This view aligns with the FedWatch Tool’s projections, which currently price in at least two cuts in 2026. A lower interest rate environment makes non-yielding assets like gold more appealing, helping to maintain its upward bias.

Broader market instability has also enhanced gold’s appeal. A global tech-led selloff extended into Asia, amplifying concerns across equity markets. At the same time, geopolitical risks surrounding U.S. nuclear talks with Iran and the ongoing conflict in Eastern Europe have maintained steady demand for safe-haven assets. As uncertainty builds, gold continues to stand out as a preferred hedge, supported by both macroeconomic and geopolitical catalysts.
 

Gold Sustains Momentum Following Breakout from Multi-Year Wedge

The gold chart below shows a multi-year ascending broadening wedge that has shaped price action since 2016. After an extended consolidation, gold broke decisively above long-standing resistance, marking a key technical milestone. This breakout followed a well-formed base and triggered a sharp rally toward the upper boundary of the structure.
 

(Click on image to enlarge)

Notably, the chart also highlights an inverted head-and-shoulders formation that developed over several years. Once neckline resistance was cleared, it contributed to a powerful upside move. The rally accelerated sharply, pushing price beyond the wedge’s upper resistance and signaling a structural revaluation in progress.

Gold is currently consolidating above key support, maintaining the integrity of the long-term technical structure. The ongoing rally has lifted price firmly above the $4,800 level, despite a temporary pullback. While gold has eased from recent highs, the overall outlook remains bullish. The breakout from the decade-long formation points to further upside potential. As long as price holds above the $3,500 zone, the broader pattern continues to support additional gains.
 

Gold Outlook: Dovish Policy and Global Risk Keep Setup Intact

Gold continues to build strength on both macro and technical fronts. Weak labor data and rising rate cut expectations are shifting policy sentiment in a dovish direction. At the same time, geopolitical risks and market volatility are sustaining demand for safe-haven assets. Technically, gold remains above key breakout levels and holds a bullish structure. If price stays supported above major zones, the outlook favors continued upside.

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