Gold Rebounds Past $4,170 as Weak US Jobs Data Softens Rate Hike Expectations

Spot gold (XAU/USD) mounted a solid recovery on Friday, July 3, climbing past US$4,170 after rebounding more than 3% from a recent selloff that briefly pushed the metal below the key US$4,000 benchmark. The rebound positions bullion for its first positive weekly performance in five weeks, ending a month-long stretch of heavy selling pressure.

The turnaround was fueled by the June US Nonfarm Payrolls (NFP) report, which highlighted a sharp deceleration in employment growth. The US economy generated just 57,000 jobs during the month, falling well short of market forecasts hovering near 110,000. With the labor market cooling faster than expected, traders trimmed bets on additional Federal Reserve interest rate hikes. This shift triggered a decline in both the US dollar and Treasury yields, bolstering appetite for non-yielding assets like gold.

From a technical perspective, reclaiming the US$4,100 threshold has provided near-term relief for buyers. However, market participants note that bulls must clear overhead resistance between US$4,180 and US$4,200 to establish a broader trend reversal. Failing to overcome this barrier could trigger renewed consolidation or a potential retest of lower support zones around US$4,050 and US$4,000.