Analysts predict that a robust US nonfarm payrolls report on Friday could negatively impact gold prices this week. Gold prices experienced a decline on Friday as the dollar index strengthened against major currencies following the release of the monthly employment data. Spot gold prices fell by 3.6% to reach $2,290.59 per ounce. August gold futures dropped by 2.75%, equivalent to $65.9, settling at $2325 per ounce, marking a weekly loss of 0.9%. The decrease in gold prices was further influenced by reports that the People’s Bank of China halted its gold purchases in May after continuous buying for 18 months. analysts noted that gold's bearish trend is expected to persist, targeting a price of $2272.06, with a key resistance at $2340.10. Despite these short-term trends, the long-term bullish outlook for gold remains unchanged. Ole Hansen from Saxo Bank highlighted that China, a significant driver of gold's rally, is likely to resume buying, although the recent pause indicates a reluctance to pay record prices. Technically, the critical support level for gold is around $2275, which is the May low and 0.382 Fibonacci retracement level from the February rise. The PBOC’s gold reserves have stabilized at 72.80 million troy ounces, with recent data showing a decrease in monthly purchases. UBS has adjusted its 2024 gold price forecast to $2,365, with a year-end target of $2,600 and a projection of prices exceeding $2,800 in the next two years, indicating a positive long-term outlook. Central banks' recent rate cuts are also helping to limit gold's losses. Technical analysis suggests that gold needs to surpass $2,375-80 to target $2,400 and $2,420, and must maintain above the 50-day moving average at $2,340 to prevent further declines. Generally, a strong US dollar, often a result of strong US jobs reports, can exert downward pressure on gold prices as it is considered an alternative investment to the dollar.