Gold pulled back slightly in European morning trading, as the market is now waiting for the release of the US non-farm payrolls data. How important is this data? It directly affects whether the Federal Reserve will continue to cut interest rates, and the Fed's actions in turn determine the short-term direction of the dollar. Ultimately, it also impacts whether gold can withstand the pressure.

The current situation is a bit delicate. The dollar has been rising strongly over the past two weeks, just reaching a one-month high, which puts pressure on gold prices. Interestingly, the market is also considering another scenario—expecting the Federal Reserve might still cut rates further. Coupled with some uncertainties in the international situation, these factors are providing support for gold. As a result, traders are a bit hesitant; no one wants to jump the gun. Gold prices are fluctuating around this level, waiting for the non-farm payrolls data to set the tone.