Gold prices have been showing signs of strength within a consolidation phase, supported by several recent developments in global markets. After a brief pullback, gold (XAU/USD) has rebounded from its lows, boosted by a weaker US dollar and increased bets on an interest rate cut by the Federal Reserve in September. Market participants are responding to softer US labor data, which has reduced expectations for further rate hikes and given gold a renewed edge as a safe-haven asset.

Technical indicators confirm this strengthening momentum. Gold found solid support near the $3,270 level, with technical patterns suggesting the potential for a move higher. The Alligator indicator, a tool often used to gauge market direction, has turned upward, reinforcing the case for continued bullish movement following the recent correction. For bullish traders, a decisive daily close above $3,300 is seen as a crucial threshold that could open the door for further gains, potentially targeting resistance zones around $3,322, $3,341, and $3,350.

On the fundamental side, commentary from Federal Reserve officials indicates growing openness to rate cuts, underscoring a cooling labor market and subdued inflation risks. These shifting economic conditions continue to provide tailwinds for gold, as lower interest rates generally make non-yielding assets like gold more attractive.

Looking ahead, if gold maintains its current momentum, analysts see room for prices to challenge the $3,400 mark. However, should bearish sentiment return and prices break back below the $3,270 support, there is risk of a deeper correction toward lower support levels near $3,243, $3,200, or even $3,121. As volatility remains elevated and investors await further economic indicators such as the S&P Global services PMI, gold’s next major move will likely hinge on upcoming macroeconomic developments.