Gold regains momentum as XAU/USD targets $5,100 amid a weakening Dollar. After bouncing back from Tuesday’s lows, Gold is continuing its late-January recovery, with buyers currently challenging the $5,100 resistance level. The precious metal is benefiting from a softer US Dollar on Wednesday. However, market participants remain wary as they await the January Nonfarm Payrolls (NFP) report. The Greenback’s decline is fueled by disappointing Retail Sales and cooling labor costs, which bolster the case for Federal Reserve rate cuts. Investors are now focused on the NFP data to see if it mirrors last week’s weak employment figures.
Gold Technical Outlook: XAU/USD Bullish Bias Intact Near $5,100 Gold is currently hovering just below its February peak of $5,100. The 4-hour chart reveals a strengthening bullish setup, supported by an upward-sloping 100-period SMA. With the MACD holding in positive territory and the RSI climbing toward 60, momentum is clearly favoring the upside. A decisive break above $5,100 would validate an active Gartley Pattern, potentially clearing the path toward the $5,340 zone—the 78.6% Fibonacci retracement level of the late-January decline. Conversely, immediate support sits at $4,995, where Tuesday’s lows align with the 50% Fibonacci level.
