Gold price struggles to capitalize on intraday gains; remains below multi-week top ahead of US NFP

• Gold price gains some positive traction following Thursday’s late pullback from a multi-week high.
• The US-China trade talks optimism holds back the XAU/USD bulls from placing aggressive bets.
• A modest USD uptick further contributes to capping the commodity ahead of the US NFP report.

Gold price (XAU/USD) retains its positive bias through the first half of the European session on Friday, though bulls seem reluctant to place aggressive bets and opt to wait for the release of the US Nonfarm Payrolls (NFP) report. Heading into the key data risk, the US Dollar (USD) attracts some buyers amid repositioning trades and acts as a headwind for the commodity. Adding to this hopes for the resumption of US-China trade talks turn out to be another factor capping the upside for the precious metal.

Investors, however, remain on edge in the wake of US President Donald Trump's rapidly shifting stance on trade policies. Apart from this, geopolitical risks stemming from the protracted Russia-Ukraine war, and conflicts in the Middle East, might keep a lid on any optimism in the markets and lend support to the Gold price. Meanwhile, bets that the Federal Reserve (Fed) will cut interest rates further in 2025 might cap the USD and support prospects for a further appreciating move for the non-yielding yellow metal.

Daily Digest Market Movers: Gold price sticks to modest gains ahead of US NFP

• US President Donald Trump and Chinese leader Xi Jinping agreed to further talks to settle trade disputes. Moreover, Trump said that the call was focused almost entirely on trade and resulted in a very positive conclusion, triggering an intraday pullback in the Gold price from over a four-week high on Thursday.
• The initial market reaction, however, turns out to be short-lived on the back of Trump's rapidly shifting stance on trade policies. Adding to this, some repositioning trade ahead of the US Nonfarm Payrolls (NFP) report assists the XAU/USD pair to regain some positive traction during the Asian session on Friday.
• The impactful US monthly employment data is expected to show that the world's largest economy added 130,000 new jobs in May following the stronger-than-expected 177,000 rise recorded in the previous month. Meanwhile, the Unemployment Rate is anticipated to hold steady at 4.2% during the reported month.
• A host of other employment readings released this week pointed to a cooling in the US labor market, which should give the Federal Reserve more impetus to cut interest rates. Traders are currently pricing in the possibility that the US central bank will deliver at least two 25 basis points rate cuts by the year-end.
• However, recent comments from a slew of Fed officials suggested that the US central bank might stick to the wait-and-see approach amid persistent trade-related uncertainties. Hence, the crucial US employment details will be looked upon for fresh insight into the Fed's policy outlook and drive the US Dollar.

Gold price remains below $3,400 pivotal point; bullish potential seems intact

From a technical perspective, the top boundary of a multi-day-old range, around the $3,400 round figure, now seems to have emerged as an immediate barrier. Given that oscillators on the daily chart are holding in positive territory, a sustained strength beyond the said handle will be seen as a fresh trigger for bulls. The subsequent move-up could lift the Gold price to the $3,433-3,435 intermediate hurdle en route to the $3,500 neighborhood, or the all-time peak set in April.

On the flip side, the $3,334-3,333 area, or the lower end of the range, might continue to protect the immediate downside. Some follow-through selling, leading to a subsequent slide below the $3,326-3,324 horizontal resistance breakpoint, now turned support, could drag the Gold price below the $3,300 round figure, to the $3,286-3,285 region.