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Gold (XAUUSD) came under pressure as markets reacted to mixed U.S. jobs data and shifting Fed expectations. Strong payroll growth and a higher unemployment rate kept policy direction unclear. Hawkish Fed commentary added caution, while external factors like Japan’s stimulus plans and a pullback in tech stocks offered partial support. These developments created a volatile environment for gold, leaving investors focused on upcoming economic signals.
 

Gold Slips on Fed Caution, Finds Support in Global Liquidity Hopes

Gold’s recent decline comes amid renewed hawkish sentiment from Federal Reserve officials. The September jobs report showed stronger-than-expected hiring, with 119,000 jobs added versus the 50,000 forecast. Despite the upside surprise, the rise in the unemployment rate to 4.4% complicated the policy outlook. The data didn’t offer enough conviction to either support or dismiss the case for easing. This has added to volatility in gold.

Moreover, hawkish comments from Fed officials deepened market caution and weighed on gold prices. Policymakers highlighted risks in cutting rates too early. Cleveland Fed President Beth Hammack warned that cutting rates too soon could pose broad economic risks. Similarly, Lisa Cook cautioned that asset prices could fall significantly if policy shifts too quickly. These hawkish remarks weighed on gold, which tends to perform better in a lower interest rate environment.

However, gold found some support from shifting market dynamics. The tech sector saw a pullback, with momentum fading after Nvidia’s earnings-led rally, which helped limit gold’s decline. Meanwhile, expectations for Japan’s upcoming stimulus package added to gold’s support. The proposed package, valued at over JPY 20 trillion, revived hopes for broader liquidity. If upcoming U.S. economic data shows signs of slowing, it could renew dovish expectations from the Fed and support gold in the medium term.
 

Gold Builds Bullish Structure with Trendline Support and Breakout Patterns

The gold chart below shows a series of consolidations followed by strong upward breakouts. Price action has consistently respected a well-defined ascending support trendline over recent months. Each period of sideways movement or minor decline has found support along this rising base, setting the stage for renewed strength. The overall pattern highlights steady bullish control, with each breakout driving gold to higher levels within the broader trend.
 

(Click on image to enlarge)

Gold has continued to build strength through a sequence of well-defined continuation patterns. The price first broke out of a falling wedge, triggering a sharp upward move. This was followed by a consolidation phase that led to another breakout, extending the bullish trend. Currently, gold is forming a flat-topped triangle, with price compressing near a key resistance area. If this pattern resolves to the upside, it could signal the next leg higher in the ongoing bullish structure.

Currently, gold is holding near recent highs, despite pressure at the upper edge of the pattern. The structure of higher lows continues to hold, preserving the integrity of the broader uptrend. Bullish arrows on the chart highlight previous breakout moves, and the current setup suggests potential for another leg higher. As long as gold maintains support along the rising orange trendline and holds above key structural levels, the technical outlook remains constructive.
 

Conclusion: Gold Holds Bullish Setup despite Fed-Driven Uncertainty

Gold continues to trade sideways as markets evaluate conflicting U.S. labour data and evolving Fed guidance. Hawkish commentary continues to limit upside, while global factors such as Japan’s expected stimulus and fading tech momentum offer partial support. Despite near-term uncertainty, gold’s technical structure holds firm, suggesting the potential for further gains if economic data softens and policy expectations turn dovish.

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