NFP Solid, But Gold Doesn't Fall: $5,000 Remains a Stronghold
Gold prices today tended to move sideways with a volatile bias, as the market weighed two competing narratives: strong US jobs data, which typically pressures gold through rising yields/dollar, versus long-term buying flows that still view gold as a safe haven when global uncertainty persists.
Data-wise, the US Non-Farm Payrolls (NFP) report for January came in stronger than expected: jobs added around 130,000 and the unemployment rate fell to 4.3%. This signaled that the labor market remains quite solid, giving the Fed reason to be more patient in cutting interest rates.
Interestingly, however, gold continued to rise/hold its ground despite the strong NFP. Several fundamental reasons often emerge during this phase: (1) long-term buying (reserve diversification, institutional demand) that is less "fearful" of a single data release, (2) a geopolitical risk narrative that keeps investors willing to hold safe assets, and (3) policy uncertainty that prompts some market participants to reduce exposure to dollar-denominated assets. This combination means that gold's reaction is not always "in line" with economic data, especially when major flows in the gold market are strong.
So, why does gold weaken in the morning after initially strengthening? This is usually triggered by micromarket factors: profit-taking after a surge, a strengthening dollar/yields following strong data (rising cost of carry), and shifts in risk-on/risk-off sentiment during the Asian session, which often has thinner liquidity. Therefore, gold may appear to "fall first," even though the larger structure is still supported by safe-haven demand and positioning that has not yet been fully resolved.
From a technical perspective (generally, psychological levels), the $5,000 area still acts as a key support area because it serves as a psychological benchmark and a zone where defensive buyers typically emerge. Above this, the market will see a layered resistance area (supply zone), which, if broken, could open up room for further gains. Conversely, if yield pressure intensifies, gold will likely retest nearby support before deciding on its next direction.
Going forward, market focus will be highly sensitive to inflation data (CPI) and subsequent readings on how quickly the Fed is comfortable easing policy. As long as investors still assess global uncertainty and headline risks have not completely disappeared, gold has the potential to remain resilient, although its path is likely to fluctuate slightly between major data releases. (mrv)
Source: Newsmker.id
