Gold prices reached a two-week high of $2,378 on Thursday, driven by weaker-than-expected US jobs data that kept US Treasury bond yields steady. The XAU/USD pair currently trades at $2,369, marking a 0.54% gain after rebounding from weekly lows of $2,320.

Market Drivers and Economic Data

US jobs data played a crucial role in driving gold prices. The number of Americans filing for unemployment benefits exceeded expectations, while the ADP Employment Change report revealed a slowdown in private US hiring. These factors, coupled with the European Central Bank’s interest rate cut, contributed to the decline in US Treasury yields and the subsequent rise in gold prices.

Market Focus: US Nonfarm Payrolls

Traders are now focused on Friday’s release of the May Nonfarm Payrolls report, which is expected to show a moderate increase in job additions. Softer-than-expected data could further strengthen the case for potential rate cuts by the Federal Reserve.

Technical Analysis: Gold Rallies Above $2,350

Gold broke out of its recent consolidation range between $2,320 and $2,360, with buyers driving prices higher. The Relative Strength Index (RSI) remains bullish, indicating continued upward momentum for the precious metal.

If the rally continues, XAU/USD could face resistance at $2,400, followed by the year-to-date high of $2,450. Conversely, a drop below $2,350 could lead to a retest of the 50-day Simple Moving Average (SMA) at $2,337, followed by the May 8 low of $2,303 and the May 3 cycle low of $2,277.