Gold reclaims four week high ahead of Friday's Non Farm Payroll data

Gold  surged to a fresh four-week high near $3,400 during European trading hours on Thursday. The metal gained strength amid growing uncertainty surrounding a potential US-China trade deal, boosting demand for safe-haven assets.

The yellow metal also drew support from Silver which jumped to $35.95 per ounce on Thursday, marking its highest level since February 2012, as weak US economic data and a dovish Federal Reserve outlook boosted safe-haven demand ahead of Friday’s non-farm payrolls report

US bond yields fell sharply on Wednesday following weak economic data, including a significant slowdown in private sector hiring—just 37K jobs added, the lowest since January 2021—and a surprise contraction in services activity. The soft data raised dovish expectations for the Fed. Lower rate expectations continue to support demand for non-yielding assets like gold.

XAU/USD TECHNICAL OVERVIEW

Technical Structure: Gold maintains a bullish technical structure, supported by multiple timeframes. On the daily chart, a bullish flag pattern has formed, with prices holding above the 20-day SMA—indicating sustained upward momentum. On the 4-hour chart, a breakout from a symmetrical triangle further confirms bullish continuation. Meanwhile, the 1-hour chart shows price consolidation, suggesting a potential breakout in the near term.

Intraday Trend/ Intraday Strategy: The intraday bias for Gold remains bullish and favours the strategy of Buying on Supports and Buying on Breakouts. 

Weekly Trend: Bullish

Major Support: 3390, 3372, 3360

Major Resistance: 3400, 3414, 3438