Gold gains over 1% as buyers shrug off strong US jobs data
Gold prices rose more than 1% on Wednesday, as steady long‑term buying helped the metal regain momentum after briefly paring gains while markets absorbed a strong U.S. jobs report.
Spot gold was up 1.19% at $5,083.00 per ounce by 02:01 p.m. ET, having earlier touched $5,118.47 before easing slightly.
U.S. gold futures for April delivery settled 1.5% higher at $5,110.10 per ounce.
U.S. job growth accelerated in January and the unemployment rate fell to 4.3%, signalling labor‑market resilience that could give the Federal Reserve room to hold rates steady while it monitors inflation.
“One strong jobs report won’t dent the mentality behind gold buying which is considered long-term and fundamental,” said Tai Wong, an independent metals trader.
“Since the big collapse, gold has shown mostly higher highs and higher lows, with buyers still confident amid the debt and divest‑from‑the‑U.S. narrative.”
Gold suffered sharp two‑day sell‑offs on January 30 and February 2 after U.S. President Donald Trump announced his pick for the Fed chair. But the metal has still gained more than 17% this year, building on last year’s record advance amid rising geopolitical and economic uncertainty and increased central bank purchases.
Data on Tuesday showed U.S. retail sales were unexpectedly unchanged in December, potentially setting consumer spending and the economy on a slower growth path heading into the new year.
The Fed will keep rates unchanged through Chair Jerome Powell’s term ending in May but cut immediately afterward in June, a Reuters poll showed, with economists warning that policy under his likely successor, Kevin Warsh, could become too loose. FEDWATCH
Non-yielding gold typically performs well during periods of geopolitical or economic uncertainty and when interest rates are lower.
Investors focus now await the U.S. consumer price index report due on Friday.
Spot silver was up 4.2% at $84.05 per ounce, after falling more than 3% in the previous session.
Spot platinum rose 2.6% to $2,140.83 per ounce, while palladium added 0.7% to $1,719.52.
Source: Reuters.com
