Gold Under Pressure on Weak Jobs Data
Gold struggled to recover on Thursday (February 5th), despite signs of weakness emerging from US jobs data. The primary reason: the US dollar continued to strengthen (or at least held strong), thus unabated pressure on the precious metal.
The initial trigger came from the sharp decline in JOLTS Job Openings data. The December 2025 release showed job openings at 6.542 million, well below the estimated 7.200 million. Normally, such a weak figure provides room for gold to strengthen as the market begins to anticipate lower interest rates. However, this time the effect was restrained because the dollar remained in demand—especially when the market is risk-off, in need of liquidity, and many market participants are tidying up positions.
Meanwhile, yields and expectations for the interest rate path have not automatically shifted to a dovish tone. Initial jobless claims rose to 231,000 from 209,000, but this level is still considered "unbroken" by some market participants. This means the market isn't yet confident enough to aggressively price in interest rate cuts. If yields don't drop significantly, gold will likely struggle to rise because this asset doesn't provide a return.
Additional pressure also comes from technical factors and positioning. After the extreme volatility in early February, many funds and traders opted to take profits and reduce leverage. In a phase like this, seemingly "bad" data can sometimes trigger additional selling due to the market's vulnerability—especially if there is forced selling or margin adjustments.
The market's focus has begun to shift to what are considered "bigger" triggers: the NFP (Non-Farm Payrolls) and the direction of the Fed's policy. JOLTS and jobless claims are important, but the market often chooses to hold off on reacting until there is confirmation from key data. As a result, gold's movements can appear "illogical" because positioning ahead of major events is more dominant than the daily headline data. (alg)
Source: Newsmaker.id
