Gold Price Forecast: XAU/USD rallies further with bulls eyeing $4,380 area

Gold (XAU/USD) continues its upward trajectory on Friday, surpassing the three-week high of $4,300, with traders targeting the $4,380 region. The precious metal has achieved its best weekly performance since January, with an impressive 7% gain, although its further ascent will hinge on the July Nonfarm Payrolls (NFP) data. Analysts from major banks foresee a modest improvement in Friday's labor market report, with a "slight uptick in headline (+65k forecast vs. +57k previously)" and the latest readings potentially falling below the 3- and 6-month moving averages due to a slowdown in hiring momentum.

Currently trading at $4,315.19, XAU/USD maintains a positive outlook for the near term after breaking the April high resistance levels. Support levels can be found at Thursday's low of $4,223, the broken trendline around $4,050, and the July 31 and August 3 lows near $4,000. Throughout history, gold has served as a store of value and medium of exchange, and today, it is often regarded as a safe-haven asset and a hedge against inflation and currency depreciation.

Central banks, which hold the majority of gold reserves, diversify their portfolios in times of economic turmoil, viewing gold as a symbol of economic stability and strength.