FxAnalysis

Gold clings to its previous day’s gains on Friday ahead of the United States (US) Nonfarm Payrolls (NFP) data for August, which will be published at 12:30 GMT.

The Bank of Canada (BoC) held at 2.25% on Wednesday for a seventh straight meeting and rewrote the one paragraph that still argues against a hike. In July, the BoC’s statement called the labour market soft and pinned the unemployment rate inside a 6.5%-7% range it had held since the end of 2024.

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Base case: while above the 200-day SMA near 0.6980, spot should maintain the constructive stance. Of note is that the pair is navigating close to the overbought zone, which carries the potential to, eventually, trigger a “technical” correction.

The US Dollar (USD) remains under selling pressure on Thursday, as investors juggle with risk-related headlines and little guidance from macroeconomic data. Spot Gold benefited from broad USD weakness and surpassed the $4,500 level during American trading hours.

Gold is building on its recovery from four-week troughs below $4,300, with buying aiming to recapture the key near-term resistance at around $4,450 early Thursday.