Gold trading scenarios on the day of the US employment data release

Gold prices experienced significant selling pressure during Tuesday's trading session, with the spot price of gold against the US dollar falling to $4,276.33 per ounce, reflecting the continued dominance of the short-term downtrend. This decline places the market before a highly sensitive technical test, with the price consolidating above a critical support zone between $4,275 and $4,278 per ounce.

This comes ahead of the release of US employment and unemployment data later today, data expected to play a pivotal role in guiding the Federal Reserve's upcoming decisions, which will directly impact the performance of financial markets in general.

The current situation is characterized by a state of high anticipation among traders, as any clear break below this range could open the door to a new and more rapid wave of selling, while a strong rebound from these levels carries the potential to surprise sellers with a sharp upward move in the short term. This duality of scenarios places gold at a pivotal point that is difficult to ignore.