XAU/USD eyes $2,950 as Fed rate cut expectations fuel gold rally

XAU/USD advanced 1.2% to $2,925 per ounce, approaching the psychological $2,950 resistance level as markets price in aggressive Federal Reserve rate cuts following weak US labor market data. Gold's bullish momentum accelerated after recent employment indicators showed unexpected softness, with traders now pricing in a 75% probability of a 50-basis-point Fed cut at the upcoming meeting. The precious metal has gained 8.5% over the past month, supported by declining real yields and persistent inflation concerns. Technical analysis shows strong momentum with RSI at 68, while immediate resistance stands at $2,950 followed by the all-time high of $2,975. USD weakness has amplified gold's appeal, with DXY falling 1.8% this week. Analysts project continued upside potential toward $3,000 if Fed dovish pivot materializes, making gold an attractive hedge against currency debasement.