Gold’s Midweek Rebound Signals Buyer Resilience Around $3,260
Gold’s pop back above the $3,260 mark underscores that despite a slide to two-week lows near $3,202 on Thursday, buyers remain ready to step in. After the US dollar slipped from three-week peaks on softer than expected GDP and jobless claims data, XAU/USD found fresh bids during the European morning. The metal’s modest 1.9% weekly gain reflects a tug-of-war between safe-haven demand—rekindled by lingering growth worries—and the improved risk tone driven by US tariff de-escalation hopes and equity rallies.
US Economic Data and Fed Rate-Cut Speculation Keep Gold Supported
As the Labor Department reported initial jobless claims rising to 241,000—well above forecasts of 224,000—and Q1 GDP unexpectedly contracted at a 0.3% annualized pace, investors have ramped up expectations for as many as four quarter-point Fed cuts by year-end. Those monetary easing bets, coupled with yesterday’s cooler ISM manufacturing PMI print of 48.7, have capped the dollar’s upside and allowed non-yielding gold to recapture the psychological $3,250 barrier. With the Personal Consumption Expenditures index holding near the Fed’s 2% target, dovish Fed positioning remains intact—offering gold an attractive hedge against slower growth and renewed liquidity.
Technical Landscape: Key Levels to Watch in the $3,200–$3,300 Zone
Gold’s intraday high at $3,265 collided with the 50% Fibonacci retracement of the recent rally, highlighting that the $3,260–3,265 zone will be the battleground for further gains. Failure to sustain above there risks a retest of the mid-$3,200s, where support converges at the 23.6% Fib level around $3,229 and the prior swing low near $3,202. Should buyers clear $3,300 convincingly, the next objective sits at the $3,348–3,350 supply cluster, a region that capped prices earlier this cycle. Oscillators have paused in neutral territory—neither overbought nor oversold—which suggests this consolidation could precede a stronger directional thrust once Friday’s US Nonfarm Payrolls data provides fresh impetus.
