On Tuesday, gold continues its sideways consolidation but remains near the two-week high reached the day before. The U.S. dollar is regaining ground, partially recovering losses from Friday's session caused by weaker-than-expected U.S. employment data.This rebound in the dollar is a key factor capping the upside for gold prices. Additionally, the currently dominant risk appetite in the market limits the potential for further gains in this safe-haven asset.

However, a strong dollar rally appears unlikely, as market participants continue to expect the Federal Reserve to begin a new rate-cutting cycle in September. These expectations are supported by signs of deterioration in the U.S. labor market. As a result, this continues to provide some support to gold prices, preventing a sharp decline. Moreover, lingering uncertainty in trade relations contributes to limiting downside pressure on the precious metal.

China and the U.S.—the world's two largest economies—have yet to reach a final agreement on trade issues. U.S. Treasury Secretary Scott Bessent noted that the decision to extend the 90-day tariff truce, which expires at the end of the month, will be made personally by President Donald Trump. This uncertainty continues to keep investors on edge and may support demand for safe-haven assets.

From a technical perspective, Friday's breakout above the 200-period Simple Moving Average (SMA) and the $3335 resistance level, followed by continued strength, favors the bulls. Moreover, daily chart oscillators are gaining positive momentum, confirming a bullish outlook. Therefore, any further pullback below the immediate support at $3365—where the price is currently hovering—could be viewed as a buying opportunity, with downside likely limited to the $3350–3349 area. A break below this zone, however, would expose gold to accelerated losses toward intermediate support at $3330–3315, en route to the psychological level of $3300.

On the other hand, yesterday's high around $3385 is the nearest barrier before the $3400 psychological level. A sustained move above that could pave the way for further gains toward the next key resistance near $3435. Bullish momentum may then strengthen further, lifting XAU/USD toward its all-time high around the $3500 psychological level, last reached in April.