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Gold (XAUUSD) continues to move higher as markets price in deeper Fed rate cuts. Despite Chair Powell’s cautious tone, expectations for multiple cuts in 2026 are putting pressure on the U.S. dollar. At the same time, rising jobless claims and weak labor data have intensified calls for policy easing. Global demand is also strengthening, driven by institutional interest and geopolitical risk. These combined factors have laid the groundwork for continued strength in gold.
 

Gold Gains Momentum on Weak Labor Data and Fed Rate Cut Expectations

Gold continues to draw strength from expectations of deeper Fed rate cuts, even as Chair Powell maintains a cautious stance. While the Fed currently projects just one cut in 2026, markets are pricing in two or more, keeping downward pressure on the U.S. dollar. This divergence has widened the gap between the Fed and other major central banks. The Bank of Japan is preparing to raise rates, while the ECB is likely to remain on hold. As a result, real yields remain compressed, which continues to support gold’s appeal as a hedge against currency weakness and monetary uncertainty.

Moreover, the labor market has added fuel to this bullish narrative. The latest U.S. jobless claims report revealed a surge of 44,000 initial filings, marking the largest weekly rise since mid-2021. This signals mounting weakness in employment trends and adds weight to calls for policy easing. Markets now expect that next week’s delayed NFP and inflation reports could strengthen the case for rate cuts. These developments continue to pressure the U.S. dollar, making gold more attractive in relative terms.

At the same time, global demand for precious metals is gaining strength. A Reuters report confirmed that India’s pension regulator has approved investments in gold and silver ETFs, allowing retirement funds to gain exposure to these assets. This policy change paves the way for large institutional investments from one of the leading gold markets globally. Meanwhile, silver’s strong breakout has boosted overall sentiment, drawing more interest to the broader metals space. Rising geopolitical tensions, including recent warnings from former President Trump toward Venezuela, have further increased demand for gold as a safe-haven asset.
 

Gold Maintains Strong Uptrend with Bullish Consolidation Patterns

The gold chart below shows a strong and consistent uptrend marked by a series of rising consolidations. Each consolidation phase has been followed by a breakout, leading to fresh highs. The current setup mirrors earlier patterns, with price once again coiling just below a key resistance zone. This repeated behavior suggests bullish continuation, particularly given the supportive macro backdrop.
 

(Click on image to enlarge)

A well-established rising trendline has remained intact since late 2024. It has consistently guided price action higher and confirmed the broader bullish structure. The trendline sits just below the current consolidation range, offering a potential area of dynamic support. As long as this zone holds, gold maintains a technically strong setup. The repeated formation of higher bases indicates steady accumulation and reflects ongoing strength in the overall trend.

Additionally, the breakout that followed the April–September consolidation led to a sharp upward move, with strong price acceleration. Although gold is now consolidating just below key resistance, the overall pattern remains constructive. A decisive close above this zone could trigger another wave of upside momentum. With technicals aligned and macro conditions supportive, the rally appears well-positioned to resume once the consolidation resolves.
 

Conclusion: Gold Outlook Remains Bullish as Macro and Technicals Align

Gold remains well-supported by a combination of dovish Fed expectations, weakening labor data, and rising global demand. Compressed real yields, ongoing policy divergence, and elevated geopolitical risks continue to support the bullish environment. Technically, the uptrend remains intact, with consolidations forming just below key resistance. These aligned factors continue to create a favorable environment for further gains.

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