Gold Price Holds Below Three-Week High Amid Uncertainty, USD Pressure

Gold Price Consolidates Below Multi-Week High on Mixed Sentiment

XAU/USD Trapped in Tight Range

Gold (XAU/USD) is holding steady in Thursday's early European session, with prices trading just below the three-week high marked earlier this week. Despite lacking a clear intraday bias, bulls are not retreating, and the broader structure remains constructively bullish.

Track Performance: Check real-time XAU/USD price action on our Precious Metals Dashboard.

USD Gains Cap Gold, But Fed Outlook Offers Support

A mild uptick in the US Dollar (USD) is applying slight downward pressure on gold. However, recent soft US data—including weak services and employment indicators—has strengthened expectations for a Federal Reserve rate cut in 2025. This weakens the case for extended USD strength, reinforcing gold’s near-term support.

Explore: USD vs Gold – Correlation Explained.

Geopolitical and Trade Risks Keep Gold Afloat

Geopolitical tensions and uncertainty in global trade negotiations, especially ahead of anticipated talks between Xi Jinping and Donald Trump, continue to support safe-haven demand for gold. The metal typically thrives in risk-off environments, and current headlines offer a cushion against any major bearish breakdowns.

NFP Report in Focus

Markets remain cautious ahead of the US Nonfarm Payrolls (NFP) report due Friday. With traders opting for reduced exposure, short-term volatility may remain limited until fresh labor data confirms or challenges the Fed's expected dovish path.

Key Technical & Market Takeaways

• Gold trades just under three-week high, with no clear intraday direction
• USD recovery is modest, with Fed rate cut bets capping upside
• Safe-haven demand persists amid trade and geopolitical uncertainty
• Friday’s NFP release likely to provide the next breakout trigger