Bad NFP, But Gold Still Drops — Structure Wins AgainGoldOANDA:XAUUSDMihai_IacobFriday’s NFP report came in significantly worse than expected, with the US economy losing 92K jobs, a clear signal that the labor market may be entering a more fragile phase. From a macro perspective, such data suggests that the Federal Reserve could lean more dovish going forward. What Happened on Friday? Gold reacted in a highly volatile manner to the NFP release: - First, we saw a sharp upward spike, as traders priced in the possibility of a more dovish Fed. - That move was quickly followed by a drop, showing that buyers were not fully in control. - Toward the end of the session, Gold recovered and closed higher, which on the surface appeared supportive for the bullish narrative. From a fundamental standpoint, this late-session rise made sense. A weaker labor market typically supports Gold through expectations of lower interest rates. However, the chart tells a slightly different story. Structure Still Matters Despite the rebound on Friday, Gold failed to break any major resistance levels. The price remained trapped within the same broader range, and structurally the market did not change its bearish bias. This is an important lesson for traders: Fundamental news may trigger volatility, but market structure ultimately determines direction. The Asian Session Surprise The new week started with a surprise. During the Asian session, Gold experienced a massive drop from 5180 to around 5020. This move erased all Friday’s optimism and once again confirmed that the bearish structure remained intact. Even though Friday’s data supported the bullish fundamental narrative, the market respected the technical framework. Current Situation At the time of writing, Gold is rebounding after the sharp drop, following the test of the important 5000 psychological zone. This rebound is not unusual. After such aggressive moves, markets often produce technical pullbacks before deciding on the next direction. For traders, this rebound could potentially offer better positioning opportunities on the sell side, especially if the price approaches areas of resistance again. Trading Perspective The key takeaway remains simple: - Friday’s rally did not change the broader structure. - The market failed to break resistance. - The Asian session drop reinforced the bearish bias. For now, my approach remains unchanged: ➡️ Looking to sell rallies while the structure remains bearish.