• XAU/USD fell near the 100-day SMA near $1,960 but held weekly gains.
• USD continued to gain ground on Friday following solid Jobless Claims data.
• All eyes are on the FOMC decision next week.

At the end of the week, the XAU/USD traded near the 100-day Simple Moving Average of $1,962, experiencing a 0.30% decline but recorded a weekly gain, its third in a row.

The prevailing strength of the US Dollar continues to exert downward pressure on XAU/USD. Notably, the recent release of Initial Jobless Claims data by the US Department of Labor revealed a lower figure of 228,000 people filing for unemployment benefits in the second week of July,  below the market expectation of 242,000. These positive employment figures reflect a robust US economy, potentially prompting the Federal Reserve (Fed) to maintain a more aggressive stance. In that sense, the US bond yield rose sharply on Thursday, boosting the USD and applying the non-yielding metal selling pressure.

 Ahead of next week’s Federal Open Market (FOMC) decision, markets have practically priced in a 25 basis point (bps) hike, and robust labour market data boosted the odds of an additional hike past July. However, those odds remain low, near 30%. In addition, Chair Powell’s presser will be closely watched as investors look for clues regarding forwards guidance