After reverting from its highest level in a month, the gold price remains defensive.

The Gold Price (XAUUSD) accurately depicts the pre-NFP trade pause, with bulls taking a rest above the major support confluence while bracing for the second straight weekly gain. In doing so, the XAUUSD reflects the market’s uncertainty regarding the Federal Reserve’s (Fed) future move, since the recent set of US economic data hasn’t been favorable to policy hawks. For decision-making purposes, today’s US jobs report is highlighted.

The latest US inflation and activity numbers provoke turmoil by putting the Fed’s policy shift fears to the test.

However, recent pricing pressure data from the United States suggests’sticky’ service inflation and the absence of significant cutbacks in activity. However, the pessimistic attitude and lackluster prints of the early indicators surrounding US job prospects drive rate rise forecasts higher.

A flurry of steps from China to protect the economy from reverting to COVID-like days appear to have put a floor under the Gold Price, owing to Beijing’s standing as one of the main XAUUSD consumers. Among these were the People’s Bank of China’s (PBoC) 2.0% drop to the foreign currency reserve ratio and several Chinese banks’ reductions in Yuan deposit rates.

It should be noted that the wideThe prospect of a stop to the rate hiking cycle, along with recently lower inflation data from the world’s leading nations, appears to be defending gold purchasers.

For the second week in a row, gold purchasers will benefit from a weak NFP.

Moving on, the US Nonfarm Payrolls (NFP), Unemployment Rate, and Average Hourly Earnings (AHE) for August will be critical for clear direction, as the past few months of data have teased the Fed doves, implying a need for good results to propel Gold Price upward.

Gold Technical Outlook

Despite the recent decline, the Gold Price remains solidly above the $1,932 support , according to our Technical Confluence indicator. Nonetheless, the indicated important support consists of the 50-DMA, Pivot Point one-week R1as well as 5-DMA.

The $1,936 level, which encompasses the 61.8% Fibonacci retracement on a one-month basis, also limits the XAUUSD’s short-term downside.

However, the Gold Price’s weakness above $1,930 puts it vulnerable to a drop towards the $1,916 support confluence, which includes the middle band of the Bollinger on the daily chart, Fibonacci 38.2% on the one-month and 10-DMA.

Alternatively, the Fibonacci 38.2% on a one-day basis ensures that the Gold Price will rebound quickly to about $1,945.

Following that, a convergence of the 100-DMA and the Pivot Point one-day R3 will serve as the final line of defense for XAUUSD sellers at $1,955, a breach of which may drive the Gold Price towards the numerous obstacles set in May and July around $1,985.

Overall, the Gold Price faces less obstacles. However, the US job figures might put the bulls to the test.