XAUUSD, Time frame: daily chart, Tools: SMA 20+35+50XAUUSD, Time frame: daily chart, Tools: SMA 20+35+50

A closer look at gold's price action shows that it is currently stabilizing near the extension of a key support trendline around the $4,020 level. At the same time, prices remain below the 20-day, 35-day, and 50-day moving averages, indicating that gold is still trading within a bearish trend. From a technical perspective, this downward trend is expected to remain intact as long as prices stay below the $4,400 per ounce resistance level.

Markets are now awaiting the release of the US Nonfarm Payrolls (NFP) report on Thursday, with expectations that the U.S. economy added 115,000 jobs, down from 172,000 in the previous month, while the unemployment rate is projected to remain unchanged at 4.3%. Such a reading would likely be viewed as comfortable for the Federal Reserve, reducing the need for any immediate changes to interest rates. This scenario could support the US dollar while weighing on commodities and precious metals, particularly gold.