Today, gold is consolidating near Friday's high.

At the same time, the U.S. dollar is starting the new week with moderate gains, partially recovering from Friday's losses triggered by weaker-than-expected U.S. employment data.

The nonfarm payrolls report showed that only 73,000 jobs were created in July—well below the expected 110,000. Additionally, the figures for May and June were revised downward, indicating further cooling in the U.S. labor market.

Other indicators in the report showed the unemployment rate rose to 4.2% in June from 4.1%, while the labor force participation rate fell to 62.2% from 62.3%. At the same time, average hourly earnings increased from 3.8% to 3.9%. Just a few hours after the release of this data, U.S. President Donald Trump ordered the dismissal of the head of the Bureau of Labor Statistics. It was also reported that Federal Reserve Governor Adriana Kugler had resigned from the Fed Board.

These developments come amid increased political pressure on the Fed to cut lending rates, raising concerns about the central bank's independence. This environment may limit the U.S. dollar's upside and support gold as a safe-haven asset.

Additionally, Trump ordered two nuclear submarines to be deployed near Russian shores in response to Dmitry Medvedev's statement that each new Trump ultimatum would be treated as a threat. This raises the risk of further geopolitical escalation, especially against the backdrop of the ongoing Russia–Ukraine conflict. Such a scenario could become another supportive factor for gold.

Meanwhile, the potential for further dollar strength remains limited. Markets have already priced in the likelihood of a rate cut in September, creating favorable conditions for continued growth in gold prices. Moreover, ongoing uncertainty in trade relations and the risk of further geopolitical tensions continue to fuel demand for gold as a safe-haven asset. Overall, these factors call for caution among traders betting on a price decline or taking aggressive short positions.

From a technical perspective, Friday's breakout above the $3,350 resistance level—close to the 200-day simple moving average (SMA)—favors the bulls. Furthermore, daily chart oscillators remain in positive territory, confirming the bullish outlook.

However, a price pullback below the 200-day SMA on the daily chart could attract buyers around the $3,315–3,320 level. This could help limit downside near the key psychological level of $3,300. A break below that level would shift the outlook in favor of the bears.