$4,500 Resistance Looms as Gold Rebounds on Softer US Data

Gold prices have rebounded from the critical $4,000 support zone and entered this week with renewed bullish momentum. The precious metal climbed above $4,360 on Friday after U.S. employment data unexpectedly weakened, causing markets to price in a greater possibility of a September rate move by the Federal Reserve.

The disappointing jobs report led to a weaker dollar and lower interest-rate expectations, providing support for gold as a safe-haven asset. However, the recovery now faces a major test with a sustained break above $4,500 needed to confirm a bullish trend.

China's central bank continues to accumulate bullion, reinforcing the longer-term demand trend from official institutions. Meanwhile, weaker Chinese retail demand and the $4,500 resistance level could limit the recovery, despite continued central-bank buying.