Gold prices rebounded on Monday, climbing near the highest level in three weeks as investors reacted to the latest US jobs report and positioned ahead of Tuesday’s inflation data. The precious metal jumped to $4,130, marking a gain of more than 7% from its lowest level this year.
The move came despite strong US employment data. The economy added 165,000 jobs last month, above analyst expectations, while the unemployment rate fell to 4.1%, better than the 4.2% forecast. Wage growth also strengthened. These numbers raised the possibility that the Federal Reserve could hike interest rates at its December meeting, potentially bringing rates to between 4% and 4.25%. US bond yields remained elevated, with the ten-year at 4.8% and the five-year at 4.675%.
Gold’s resilience is also tied to geopolitical developments. The situation in Iran remained calm over the weekend, and the Trump administration leaned toward economic pressure rather than military action, seeking to prevent trade between Iran and its 14 land neighbors. Crude oil prices barely moved, with Brent near $97 and WTI near $90. Meanwhile, US public debt has crossed $40.5 trillion, reinforcing gold’s appeal as a store of value.
From a technical perspective, gold bottomed at $3,872 last month and has now risen to around $4,123, above the key resistance level of $3,937. A double-bottom pattern has formed with a neckline at $4,692, and bullish momentum could target $4,300. A drop below $4,000 would invalidate the bullish outlook.
