NFP Misses, Gold Rises—Market Wary of Venezuela & Iran
Spot gold prices rallied following the release of US Nonfarm Payrolls (NFP) data today. Gold briefly rose as the market picked up signs of a slowing US economy, but remained cautious as the Fed's interest rate direction remains uncertain.
Official data showed December's NFP rose by 50,000, slightly below market expectations, while the unemployment rate fell to 4.4%. The combination of "slowing job growth but falling unemployment" divided the market: there was reason to hope for an interest rate cut, but not enough to force the Fed to cut again immediately.
Immediately after the data was released, the dollar tended to hold firm, holding back gold's growth, but gold remained supported by expectations that interest rates could eventually fall in 2026. At the same time, hedging interest emerged as geopolitical tensions persisted. At the time of writing, spot gold (XAU/USD) was trading around $4,486/oz, with a daily range of approximately $4,453–$4,492/oz.
Geopolitically, the market is still monitoring Venezuela after Trump announced he was canceling a "second wave of attacks" due to claims of cooperation and the release of political prisoners. However, tensions remain high due to the ongoing issue of US control over Venezuela's energy sector.
In Iran, the situation is also fueling safe-haven sentiment: recent reports suggest an internet blackout amid widespread protests, raising concerns about domestic stability and regional risks. When headlines like these emerge, gold is often quickly sought as a safe-haven asset.
Source: Newsmaker.id
