Gold Holds Breath Ahead of NFP
Gold prices (XAU/USD) moved slightly lower on Friday, with pressure coming from the still-strong US dollar ahead of tonight's release of US employment data (Nonfarm Payrolls/NFP).
In the latest session, spot gold was around US$4,473/oz (bid), after previously bouncing from the US$4,400 area. Movement tends to be limited as the market awaits major triggers from US data.
On the currency side, the dollar index (DXY) rose and held firm around 98.933, near a one-month high. A stronger dollar typically puts pressure on gold because it makes it more expensive for buyers outside the US.
However, gold's weakness remains restrained by expectations that the Fed will keep policy easing open in 2026. If the market "buys" the interest rate cut scenario again, gold, as a non-yielding asset, could again find support.
The main focus remains on the December Non-Farm Payrolls (NFP) report, which is expected to add around 55,000–60,000 jobs, while the unemployment rate is projected to fall to 4.5%. This data has the potential to directly move the dollar, yields, and the direction of gold in the short term.
In addition to the data, geopolitical factors also act as a brake to prevent gold from falling too far, as demand for safe-haven assets can emerge at any time when global tensions rise. Therefore, market participants tend to wait for confirmation after the NFP before taking their next large position.
Source: Newsmaker.id
