Analyst: Gold’s Bullish Momentum Holds as U.S. Jobs Data and Trump Tariff Ruling Loom

Gold prices continue to trade with bullish momentum intact, supported by geopolitical risks and soft U.S. economic signals, but key events later this week could test the rally, according to analyst Giuseppe Dellamotta.Dellamotta said gold remains underpinned by persistent macro uncertainty, though Friday’s U.S. Non-Farm Payrolls (NFP) report represents a critical inflection point for near-term price direction.Non-Farm Payrolls seen as key test for goldWhile the previous U.S. jobs report raised credibility concerns due to disruptions linked to government shutdown issues, Dellamotta said the upcoming release should provide a clearer snapshot of labor market conditions.Stronger-than-expected NFP data could pressure gold prices, as it would likely delay expectations for near-term Federal Reserve rate cuts, prompting traders to unwind bullish positions.Weaker-than-expected data, by contrast, would reinforce the case for looser monetary policy and continue to support gold’s upside bias.“Strong data could trigger a meaningful correction, while weak data would keep the upward trend intact,” Dellamotta noted.Trump tariff ruling adds second layer of riskIn addition to the labor data, markets are also watching a potential legal development. The Supreme Court of the United States has designated Friday as an opinion release day, raising the possibility of a ruling on Donald Trump’s global tariff policies.Dellamotta outlined two scenarios:If the tariffs are overturned, reduced stagflation risk could weigh on gold prices as inflation fears ease.If the tariffs remain in place, the decision may not spark sharp volatility but would continue to provide underlying support for gold, given ongoing trade and inflation uncertainties.Outlook: bullish bias with event-driven riskOverall, Dellamotta said gold’s structural bullish trend remains intact, but warned that Friday’s dual catalysts — U.S. labor data and a potential tariff ruling — could drive heightened volatility.Until those risks are resolved, gold is likely to remain sensitive to shifts in rate expectations, inflation outlooks, and geopolitical headlines, with momentum favoring the upside unless materially strong U.S. data changes the policy narrative.