Dollar Under Pressure, Gold Gains Comfort at Higher Levels
Gold prices held firm above the psychological $5,000 per ounce level in today's trading, supported by a combination of weak US economic data and persistent safe-haven interest. In the latest session, XAU/USD moved in the range of 5,025.5–5,056.8, indicating the market remains in "high consolidation" mode while awaiting the next trigger.
The main driver came from the United States. Official data showed retail sales in December 2025 were virtually flat at around $735 billion, a result that confirmed consumption—the largest driver of the US economy—is losing momentum compared to market expectations.
More importantly, the "core" component, often used to gauge consumption's contribution to GDP (often called the control group), reportedly fell 0.1%. This combination of a flat headline and a weaker core reinforces the narrative that growth is cooling, thus strengthening the case for further Fed monetary policy easing—a condition that typically supports gold, as the precious metal does not yield interest.
However, the market is hesitant to move aggressively as attention is now focused on the next major data release, specifically the delayed January Jobs Report. This report is scheduled for release on Wednesday, February 11th at 8:30 a.m. ET, and its results have the potential to rapidly shift interest rate expectations—which are typically immediately reflected in the dollar, yields, and gold prices.
From a geopolitical perspective, safe-haven factors remain relevant. US-Iran tensions have returned to the forefront after the US issued new guidelines requiring US-flagged vessels passing through the Strait of Hormuz to stay away from Iranian waters. As long as the Hormuz issue and the risk of escalation remain in the headlines, downward pressure on gold is likely to be more restrained due to increased hedging needs.
In conclusion, gold's fundamental bias remains positive today, but its movement has the potential to fluctuate slightly until the jobs data is released. If the jobs data weakens and the dollar/yield declines, gold has room to test the upper end of its daily range. Conversely, if data is strong and yields rebound, gold is vulnerable to a correction and retest the psychological support level of $5,000—with volatility remaining a key theme this week.
Source: Newsmaker.id
