Photo by Scottsdale Mint on Unsplash
 

Gold (XAUUSD) is regaining strength as rising market stress shifts investor sentiment toward safety. Weak labour data and faltering tech stocks have rattled confidence, especially as AI-driven gains begin to fade. Rising jobless claims, slowing private hiring, and elevated continuing unemployment all point to mounting labour market stress. At the same time, uncertainty over future Fed policy has deepened ahead of this week’s Minutes release. These combined pressures have revived demand for defensive assets, bringing gold back into the spotlight as a macro hedge with strong technical momentum.
 

Gold Rises on Weak Labor Data and Renewed Safe-Haven Demand

Gold is climbing steadily after rebounding from recent lows, with the price now pushing higher as safe-haven demand returns. Weaker U.S. labour data and concerns over stretched tech valuations have unsettled markets. AI-related stocks, which previously fueled equity gains, are losing momentum as earnings expectations decline. This shift in sentiment has triggered renewed demand for safety, driving fresh inflows into gold.

Moreover, the latest figures showed a spike in jobless claims alongside a slowdown in hiring. The ADP report showed that private employers cut jobs for four straight weeks through early November. Simultaneously, the Labour Department noted a rise in continuing unemployment claims, hinting at softening labour market conditions. These signals heightened market anxiety and pushed capital toward defensive assets.

Meanwhile, markets are now focused on the upcoming Federal Reserve Minutes, set for release later this week. The minutes are likely to highlight divisions among Fed officials over future rate decisions. Although inflation remains elevated, evidence of slowing growth could shift the Fed’s approach. With the policy outlook uncertain, gold continues to attract demand as a defensive asset.
 

Gold Breaks Out of Long-Term Channel, Signals Stronger Uptrend

The gold chart below shows a well-defined ascending channel that began in 2015. Price has steadily climbed within this structure, forming multiple rounded bases between 2021 and 2024. A decisive breakout occurred in 2024, aligning with a critical zone where gold moved from a period of compression into accelerated expansion.
 

(Click on image to enlarge)

Following that breakout, gold entered a steep upward acceleration, pushing beyond the upper boundary of its rising channel during the next phase of the move. This move reflects accelerating momentum and a shift from compression to vertical price discovery. Similar breakouts from base structures have historically led to multi-month rallies, and the current move may follow that path.

Although gold recently pulled back after testing levels near $4,400, the broader structure remains intact. The pullback appears to be a routine correction, suggesting a pause rather than a trend reversal. Price action continues to respect the breakout, with support now forming above the channel’s upper boundary. If gold stabilises above recent support, it could open the way for another upward move. The chart’s upward arrows and marked circles highlight key transition zones that may define the next phase of the rally.
 

Gold Outlook: Momentum Holds as Technical Setup Strengthens

Gold remains in a strong uptrend, supported by renewed safe-haven demand and a well-structured technical setup. Rising jobless claims, weakening tech sentiment, and policy uncertainty have revived gold’s appeal. The price continues to hold above key breakout levels, with support now developing just beyond the channel’s upper boundary. If momentum builds, gold could soon resume its upward trajectory, extending the rally that began in 2024. 

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