Weak ADP, Hot Geopolitics: Gold Holds Above $5,000
Gold prices continued to strengthen on Wednesday (February 4th) and remained firmly above the psychological level of $5,000/oz, supported by a combination of geopolitical risk-off and weak US jobs data. Spot gold last rose around 2.2% to $5,046.47/oz, while US gold futures (April) rose 2.7% to $5,068.90/oz.
Safe-haven sentiment remains strong after US-Iran tensions escalated, prompting investors to seek refuge in traditional assets like gold. Although diplomatic talks are said to be ongoing, the market maintains a risk premium due to the potential for escalation.
Data-wise, the ADP report showed that US private sector jobs added only 22,000 in January, well below market expectations. This further reinforces the narrative that the labor market is cooling—which typically restrains dollar strength and provides room for gold. While the NFP itself remains the center of attention, its schedule has been disrupted by the US government funding drama of the past few days.
Other precious metals rallied, extending their recovery after last week's extreme volatility: silver rose around 5.7% to $90/oz, platinum +4%, and palladium +5.3%.
Source: Newsmaker.id
