Market Context

Gold prices continued to rise during Friday’s trading session, heading for their first weekly gain after five consecutive weeks of declines. The main driver came from markets scaling back expectations that the U.S. Federal Reserve will continue maintaining a tight monetary policy stance, after U.S. employment data came in weaker than expected.

Spot gold rose 1.4% to $4,180 per ounce at 02:45 GMT, reaching its highest level since June 23. For the week, the precious metal was up around 1.2%, marking its first weekly gain since late May.

Notably, both the Nonfarm Payrolls report and ADP Employment data showed signs that the U.S. labor market is slowing. This helped ease concerns over prolonged inflationary pressure, reducing expectations that the Fed will keep interest rates elevated for an extended period.

A cooling interest-rate environment is creating more favorable conditions for gold to recover.

Technical Analysis: Bullish Momentum Is Strengthening

From a technical perspective, buying demand has become more visible after the sharp correction in June. Gold’s positive reaction around the medium-term support zone suggests that selling pressure is weakening, while also opening the possibility of a short-term reversal move.

According to the wave structure, gold has likely completed the yellow wave A around the $3,942 per ounce area. The market has now entered a recovery phase from A to B, with expectations that an a-b-c corrective structure may form.

In the short term, the $4,350 - $4,380 per ounce area will be an important resistance zone to watch. If buying pressure is strong enough to push prices above this region, the recovery trend will be further strengthened, and gold could soon move toward the psychological level of $4,500 per ounce.

Conclusion

After several weeks of corrective pressure, gold is showing positive recovery signals from both a fundamental and technical perspective. Weaker U.S. economic data has supported expectations that the Fed may adopt a less aggressive monetary policy stance, while price action suggests that buying pressure is gradually gaining the upper hand.

Investors should continue to monitor gold’s reaction around the $4,350 - $4,380 per ounce resistance zone, as this will be a key factor in determining whether gold can extend its recovery and move toward the $4,500 per ounce area in the near term.

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