Gold Price Forecast: XAU/USD wobbles around $3,340, awaits US labor market data

• Gold price consolidates around $3,340 ahead of the US employment data for June.
• Surprisingly upbeat US JOLTS Job Openings data has supported the US Dollar.
• Market sentiment remains cautious as Trump's tariff deadline on July 9 approaches.

Gold price (XAU/USD) trades in a tight range around $3,340 during the European trading session on Wednesday. The yellow metal struggles for direction as investors await the United States (US) Nonfarm Payrolls (NFP) data for June, which is scheduled to be released on Thursday.

Investors will pay close attention to the US NFP data as a few Federal Reserve (Fed) officials have argued in favor of early interest rate cuts, citing labor market risks. "The Fed should not wait for the job market to crash in order to cut rates," Fed Governor Christopher Waller said in an interview near the June's last week.

Theoretically, lower interest rates by the Fed bode well for non-yielding assets, such as Gold.

Ahead of the US NFP data, investors await the ADP Employment Change data for June, which will be published at 12:15 GMT. The US private sector is expected to have added 95K fresh workers, significantly higher than 37K recorded in May.

Meanwhile, a decent recovery move in the US Dollar (USD), following the upbeat US JOLTS Job Openings data for May has also limited the Gold price's upside. Higher US Dollar makes Gold an expensive bet for investors.

The US Dollar Index (DXY), which tracks the Greenback's value against six major currencies, recovers sharply to near 97.00 after snapping nine-day losing streak.

On the economic front, uncertainty surrounding the deadline of the reciprocal tariffs on July 9 and progress in US President Donald Trump's so-called "Big Beautiful Bill" will continue to support the Gold price.

Gold technical analysis

Gold price trades near the upward-sloping trendline of an Ascending Triangle formation on a daily timeframe, which is placed from the April 7 low of $2,957. The horizontal resistance of the above-mentioned chart pattern is plotted from the April 22 high around $3,500. Theoretically, a breakdown of the asset below the upward-sloping trendline results in a sharp downfall.

The precious metal trades wobbles near the 20-day Exponential Moving Average (EMA) around $3,342, suggesting that the near-term trend is uncertain.

The 14-day Relative Strength Index (RSI) oscillates inside the 40.00-60.00 range, indicating a sideways trend.

Looking up, the Gold price would enter in an unchartered territory after breaking above the psychological level of $3,500 decisively. Potential resistances would be $3,550 and $3,600.

Alternatively, a downside move by the Gold price below the May 29 low of $3,245 would drag it towards the round-level support of $3,200, followed by the May 15 low at $3,121.

Gold daily chart