Gold Pulls Back From $4,300 — Is the NFP Rally Losing Steam?

Gold is giving back part of Friday's surge, but the bigger picture has changed.

After the latest US jobs report showed 23,000 jobs were lost in July, gold jumped to its highest level since June 17 as traders quickly scaled back expectations for another Fed rate hike.

The previous month's payrolls were also revised sharply lower, from 57,000 to just 20,000.

That is a major shift in the rate story.

A weaker US labour market means less pressure on the Fed to raise rates, which can weigh on the dollar and support gold.

Gold is now pulling back as the dollar stages a modest recovery, but the key question is whether buyers can defend $4,300.

Technically, $4,300 has become an important short-term support level. Holding above it could keep the recent bullish momentum alive, while a clear break below could open the door to a deeper correction.

The next upside challenge is around $4,400. A move back above $4,300 would put that level firmly back in focus, especially if upcoming US inflation data continues to reduce the case for higher rates.

For gold traders, the setup is becoming much clearer: $4,300 is the line to watch, while the Fed's next move remains the bigger driver.