Gold Price Plummets 12% Towards Critical Support Ahead of Key Jobs Report
Gold's price has plummeted by over 12% in just five weeks since its August peak, with bearish momentum building up. The XAU/USD is now approaching a crucial support level where the immediate downside bias becomes increasingly vulnerable to price inflection.
A weekly close below this support would validate renewed downside continuation and expose the yearly low as the next major objective. Meanwhile, the yearly open marks initial resistance, with a stronger recovery required to suggest that a more meaningful low is developing.
The upcoming Non-Farm Payrolls report on Friday will be a crucial catalyst for gold prices, especially after softer inflation data shifted expectations towards a potential Fed hold this month. With markets pricing in a 70% probability of a rate hold and 80% odds of at least one hike by year-end, the next reaction will determine whether gold can stabilize or resume its decline.