• Gold prices demonstrate resilience after testing one-week lows near $3,is xrp a good investment300 support zone

• Mixed signals from US labor data continue influencing Fed rate cut expectations

• Geopolitical tensions and dollar weakness create favorable conditions for precious metals

The gold market (XAU/USD) continues navigating turbulent waters as prices recover from early Monday losses that briefly pushed the yellow metal below the psychologically important $3,300 threshold. This marks the third consecutive session of downward pressure following last week's retreat from near one-month highs above $3,400, though the precious metal has shown notable resilience in Asian trading hours.

Market participants remain cautious ahead of high-stakes US-China trade negotiations scheduled in London, with geopolitical uncertainties continuing to underpin demand for traditional safe-haven assets. The commodity's recovery trajectory faces headwinds from shifting expectations regarding Federal Reserve monetary policy, particularly after Friday's employment data prompted traders to reassess the likelihood of near-term rate reductions.

Market Drivers: Diverging Forces Create Gold Price Volatility

Friday's Nonfarm Payrolls release presented a mixed picture for the US economy, with May job creation figures coming in at 139,000 positions - slightly above consensus estimates but below April's revised 147,000 reading. The unemployment rate held steady at 4.2% while wage growth surprised to the upside at 3.9% year-over-year, exceeding market projections.

These developments have led to recalibrations in interest rate expectations, with Treasury yields maintaining elevated levels across the curve. The shifting rate outlook creates headwinds for non-yielding assets like gold, though several countervailing factors continue supporting the precious metal's valuation.

Ongoing concerns about US fiscal sustainability, combined with persistent geopolitical tensions surrounding the Russia-Ukraine conflict, have limited the dollar's ability to capitalize on improved yield differentials. Additionally, market participants continue pricing in potential Fed easing later this year, with September remaining a focal point for possible policy adjustments.

The upcoming US-China trade discussions represent a critical variable for risk sentiment, with recent optimistic comments from US officials fueling hopes for progress in resolving longstanding trade disputes between the economic superpowers.

Technical Perspective: Key Levels to Watch for XAU/USD

From a chart perspective, gold's ability to hold above the $3,300 handle and 200-period moving average on four-hour timeframes suggests underlying strength in the current environment. Traders should monitor this support zone closely, as a decisive breakdown could open the door for extended declines toward the $3,282 area and potentially the May 29 swing low around $3,245.

On the upside, resistance emerges near the $3,352-3,353 zone, with additional selling pressure likely to materialize near the $3,377-3,378 region. A sustained move beyond these technical barriers could reignite bullish momentum, potentially retesting the psychologically significant $3,400 level and April's record highs near $3,500.

The current technical setup suggests gold remains in consolidation mode after its recent pullback from multi-week highs, with traders awaiting clearer signals about the fundamental drivers that will determine the next sustained directional move for the precious metal.