Gold tumbled sharply on Friday amid robust nonfarm payroll figures, shifting the short-term technical bias firmly to bearish.
U.S. latest employment data far outperformed market expectations, prompting investors to price out near-term Federal Reserve rate cut bets entirely. The U.S. Dollar and Treasury yields climbed in tandem, weighing heavily on gold prices and triggering massive institutional sell-offs that drove a decisive breakdown. While the bearish trend is well-established, the sharp, rapid plunge has left gold oversold and due for a corrective bounce. No key economic releases are scheduled for Monday, with traders on standby ahead of Tuesdayās inflation report and trading activity set to remain muted; gold is projected to trade range-bound with a downside tilt.
Support Levels: The primary near-term support zone for Monday sits at 4310ā4320, where bargain-hunting buying interest is expected to emerge and prevent an immediate breakdown. In the event of extended bearish momentum, the next critical strong support lands at 4290ā4300, marking the key downside floor where price is highly likely to bottom out.
Resistance Levels: Clear overhead resistance has formed following the steep selloff. Initial hurdle lies at 4360ā4370, while 4380ā4400 has turned into major strong resistance. A bounce toward this zone will attract heavy selling from trapped long positions and fresh short orders to cap rallies, ruling out a sustained upside push. Barring sudden geopolitical safe-haven catalysts on Monday, a sharp rally is unlikely and the prevailing bearish structure stays intact.
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