Today, gold rallied following Friday's NFP employment report, which clarified expectations that the Federal Reserve will cut interest rates in December.
The report kept U.S. Treasury yields at low levels, providing a favorable backdrop for gold. In addition, political instability in South Korea, geopolitical tensions, and concerns over a potential trade war are also offering some support for the price of the precious metal. However, expectations that the Federal Reserve may adopt a less dovish stance in the future, driven by speculation that U.S. President-elect Donald Trump's policies could lead to higher inflation, are limiting the growth of the XAU/USD pair.
Traders remain cautious, refraining from opening significant positions ahead of the release of U.S. consumer inflation data scheduled for this week.
Technical AnalysisFrom a technical perspective, further strengthening above the supply zone at $2,650 will encounter resistance near $2,666. Additional buying beyond this threshold would serve as a key trigger for bulls, enabling the yellow metal to reclaim the psychological level of $2,700. Momentum could then extend further to the next significant barrier around $2,722.
Conversely, weakness below the immediate support at $2,630–$2,627, corresponding to today's intraday low, could drag the price down to Friday's low near $2,614–$2,613. The next support zone lies at $2,605, which includes the psychological level of $2,600 and the 100-day Simple Moving Average (SMA). A decisive break below this level would pave the way for deeper losses, exposing the November swing low around $2,537–$2,536.