Gold (XAU/USD) is trading nearly flat on Friday, consolidating within the range seen over the past few sessions. While the broader trend remains bullish, the metal’s inability to break above the $3,400 resistance level has shifted market focus toward the $3,340 support zone. In this article, we’ll take a closer look at gold’s performance on June 8, 2025.
On the fundamental side, a modest rebound in the U.S. Dollar ahead of today’s high-impact Non-Farm Payrolls (NFP) report has kept traders cautious, limiting aggressive short positions on the Greenback.
U.S. Employment Data Could Set the Next Direction for Gold
Markets expect the U.S. economy to have added around 130,000 jobs in May, down from 177,000 in April. However, weaker-than-expected ADP employment data and disappointing PMI figures earlier this week have raised doubts about this estimate. Any significant downside surprise in today’s job numbers could weaken the dollar and potentially drive gold prices higher.
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Technical Outlook: Signs of Fading Bullish Momentum
On the 4-hour chart, gold remains within an ascending channel, but technical indicators suggest bullish momentum may be waning. A bearish divergence and a possible Head and Shoulders pattern hint at a potential corrective move.
Currently, price action is hovering around the $3,440 level, which acts as both the neckline of the Head and Shoulders pattern and the lower boundary of the ascending channel. A confirmed breakdown below this zone would expose support levels at $3,345 and $3,285. Conversely, a decisive break above the $3,400 resistance would invalidate the bearish setup and open the door for a retest of the May 6 high at $3,440.
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