Gold traded near $4,726 on Friday, below Thursday’s two-week high of $4,764, after mixed US jobs data. Price action remained steady but with limited momentum.
US Nonfarm Payrolls rose by 115K in April, above the 62K forecast, but down from March’s 185K gain (revised from 178K). The Unemployment Rate stayed at 4.3%, matching expectations.
Labor Market Signals And Gold
Average Hourly Earnings increased 0.2% month-on-month, below the 0.3% forecast and in line with the prior reading. Annual wage growth rose to 3.6% from 3.4%, but was under the 3.8% forecast.
Gold was supported by a weaker US Dollar and lower Oil prices, while Middle East events stayed in focus. Reports said fire was exchanged near the Strait of Hormuz, which carries nearly 20% of global Oil flows.
Oil prices eased from recent highs but stayed elevated due to supply disruption risk, keeping inflation concerns in view. Expectations of higher-for-longer interest rates continued to limit demand for the non-yielding metal.
Technically, gold tested the 20-day SMA near $4,695 as Bollinger Bands widened. RSI was near 52 and ADX near 20, with resistance at $4,882 and $5,000, and support at $4,695, $4,509, and $4,350.
Trading Approaches For A Volatile Setup
We are seeing a familiar pattern now on May 8, 2026, that reminds us of the market environment back in April of 2025. That period’s mixed US jobs report, with a Nonfarm Payrolls gain of 115K, showed how gold could remain strong despite conflicting economic signals. This historical context is important as the latest jobs report for April 2026 also showed a softening labor market, creating uncertainty about the Fed’s next move.
The geopolitical risk premium that was priced into gold during the US-Iran tensions last year has not fully disappeared. We remember when gold touched a high of $4,764 as both sides exchanged fire near the Strait of Hormuz. While that specific conflict has de-escalated, the market’s memory is long, and any new instability could easily reignite safe-haven demand for the metal.
Inflation remains the persistent challenge, just as it was in 2025 when elevated oil prices kept the pressure on. The most recent Consumer Price Index (CPI) data for April 2026 came in hotter than expected at 3.1%, reinforcing the “higher for longer” interest rate narrative. This limits gold’s upside potential, as the non-yielding asset becomes less attractive when interest rates are high.
Given the building volatility, similar to what we saw in 2025 when the Bollinger Bands were expanding, traders should consider strategies that profit from price movement itself. Buying straddles or strangles on gold futures could be an effective way to position for a significant price swing in the coming weeks. This approach does not require betting on a specific direction, only that the current state of uncertainty will lead to a breakout.
For traders with a directional bias, options provide a clear path forward. If you believe geopolitical tensions will flare up again, call options with strike prices near the old resistance level of $4,882 offer leveraged exposure to the upside. Conversely, with the Fed still committed to fighting inflation, put options can serve as a valuable hedge against a potential price drop toward the support levels we saw around $4,500 last year.
