Gold traded close to $5,060/oz, giving back early strength after upbeat U.S. labor data cooled hopes for a rapid Federal Reserve pivot. January nonfarm payrolls jumped to 130K — sharply above both December’s revised 48K and the 70K consensus — while unemployment dipped to 4.3%. Wage pressures stayed firm too, with average hourly earnings rising 0.4% MoM and annual growth reaching 3.7%, reinforcing the view that the Fed can afford patience.
Stronger employment metrics nudged rate-cut expectations further out, with markets now eyeing July rather than June for a fully priced 25-bp move. Treasury yields firmed on the shift, limiting upside momentum in bullion. Still, gold’s broader structure remains constructive: prices sit near multi-week highs, supported by expectations of policy easing later in 2026, ongoing geopolitical risks, and steady official-sector demand. China’s PBoC continued accumulating gold, reinforcing a longer-term floor. The result is a balanced backdrop — short-term pressure from resilient U.S. data, but durable structural demand keeping XAU resilient.
