Gold Stays Firm Around $5,060 as Strong U.S. Jobs Data Cools Rate-Cut Hopes
Gold prices lingered close to the $5,060-per-ounce level after surrendering some early momentum, with solid U.S. employment numbers reducing expectations for a rapid Federal Reserve pivot while not fully changing the longer-term outlook. January’s nonfarm payrolls expanded by 130K — a sharp rebound from December’s revised 48K and comfortably ahead of projections near 70K. Meanwhile, the unemployment rate slipped to 4.3%, and average hourly earnings climbed 0.4% month-to-month, lifting annual wage growth to roughly 3.7%.
The upbeat labor and wage figures softened the case for immediate policy easing, prompting traders to shift expectations for the next fully priced 25-basis-point rate cut from June toward July. This adjustment supported Treasury yields and limited further upside in bullion prices in the short term. Even so, gold continues to trade near recent multi-week highs, supported by the belief that the Fed could still move toward easing later in 2026 as economic momentum cools, geopolitical risks linger, and central banks maintain steady demand.
Ongoing purchases by China’s PBoC have added a structural layer of support to the market. With strong macro data on one side and continued official buying plus global uncertainty on the other, gold’s outlook remains balanced — steady enough to hold elevated levels even as short-term interest-rate expectations evolve.
