Gold prices have been highly volatile, trading close to $3,400 per ounce as financial markets react to mixed signals from recent US economic data. Last week, gold experienced a sharp pullback following a disappointing US employment report, but the immediate aftermath saw buyers step in to support prices near the 100-day moving average at around $3,270. This support level has become a key battleground, highlighting ongoing uncertainty among investors.

The US dollar has attempted to recover from Friday’s losses, with attention turning to upcoming US services PMI data. Improved business activity could strengthen the dollar further, potentially weighing on gold in the short term. However, gold’s technical outlook shows that bulls remain active; the metal staged a rebound from the 61.8% Fibonacci retracement of the late July decline, and momentum indicators are still in bullish territory.

Resistance to the upside is strong around $3,350 to $3,385, and any sustained push above $3,385 could set gold up to challenge the $3,400 threshold again. If buyers take control at these levels, the next technical target will be the 78.6% Fibonacci retracement and potentially July’s highs. On the downside, a move below $3,270 would expose further support at $3,245 and possibly as low as $3,200, marking a shift in sentiment and risk for deeper correction.

Overall, gold remains sensitive to US economic data and the strength of the dollar. Traders should watch the $3,270 to $3,385 range closely, as a breakout in either direction could signal the next major trend. The technical patterns suggest that while bearish risks persist after last month’s reversal, bullish momentum is not exhausted, keeping gold’s medium-term outlook highly dynamic.