XAUUSD can still surge for another leg before a possible reversa

XAUUSD can still surge for another leg before a possible reversal

1. XAUUSD is on a steady and gradual uptrend with no signs of a bearish reversal at this moment.
   
   
2. Instead, the current price action shows signs of a sideways accumulation phase, indicative of bullish continuation. The next technical target is 3440, corresponding to the 161.8% Fibonacci Retracement level, though a breakout to new highs above 3500 is not yet expected.
   
   
3. A key macro driver for gold is tomorrow’s NFP report. Markets are watching for a more dovish Fed signal as inflation cools as planned.
   
   
4. If the NFP announced below expectations (127k), it could reinforce market expectations of earlier rate cuts, increasing gold bullish momentum, which is possible given that the ADP Non-Farm Employment Change recently came in significantly below expectation.
   
   
5. However, even if the NFP data is in line with expectations, XAUUSD can still advance further due to the selling off US assets flow.
   
   
   Analysis by: Krisada Yoonaisil, Financial Markets Strategist at Exness