Gold prices (XAU/USD) have drawn some buyers for the third consecutive day on Friday, trading near their weekly highs as the European session approaches. Despite the uptick, the rally lacks strong bullish momentum as investors remain cautious, awaiting the critical US Nonfarm Payrolls (NFP) report before making significant trading decisions.
Rising expectations for a larger interest rate cut by the Federal Reserve (Fed) in September have continued to weigh on the US Dollar (USD), providing some support for gold, which does not yield interest.
This week’s mixed employment data from the United States has raised concerns about the weakening labor market, contributing to a more cautious investor outlook on the economy. Persistent geopolitical tensions further temper risk appetite, offering additional support to gold as a safe-haven asset.
Given the current market conditions, traders are advised to wait for a clear follow-through before committing to an extended uptrend in gold prices, especially in anticipation of the upcoming US macroeconomic data.
