XAU/USD falls near key support as strong US jobs data fuels expectations of Federal Reserve tightening in 2026.
Gold prices extended losses on Wednesday, with XAU/USD testing support at $4,450 as the US Dollar rallied. The decline follows solid US economic data, including a rise in April job openings to their highest level in nearly two years, reinforcing expectations of potential Federal Reserve rate hikes in 2026.
The metal traded at $4,466, holding just above its intra-week low and the 200-day simple moving average near $4,420. Escalating Middle East tensions also supported the Dollar’s safe-haven appeal, as oil prices climbed amid reports of military strikes and disrupted ceasefire talks.
Traders are now focused on upcoming US data, including ADP employment figures and the ISM Services PMI, ahead of Friday’s Nonfarm Payrolls report, which could further influence Fed policy expectations.