Gold Holds, Sees Next Direction
Gold prices weakened on Thursday after strong US employment data dampened expectations that the Federal Reserve would soon cut interest rates. The precious metal fell by around 0.6%, after gaining 1.2% in the previous session.
The latest report showed that US payroll growth recorded its largest increase in more than a year, while the unemployment rate fell unexpectedly in January. This combination reinforces the signal that the US labor market remains stable in early 2026, increasing the likelihood that the Fed will keep interest rates on hold for longer.
Following the release of this data, some market participants began shifting their estimates for the next interest rate cut to July, from June. For gold, the prospect of persistently high interest rates tends to be a headwind, as gold does not provide a yield and typically benefits more when interest rates fall.
Despite the early decline, gold prices remained above $5,000 per ounce, continuing their recovery from the sharp correction at the turn of the month. Previously, gold had touched a record high above $5,595 in late January, but the rally, deemed too overheated, triggered significant profit-taking, resulting in a 13% fall in two sessions.
Several investment banks still believe gold's upward trend has the potential to continue, as its main driving factors remain—ranging from geopolitical uncertainty, the issue of the US central bank's independence, and investors' tendency to reduce their reliance on traditional assets such as currencies and government bonds.
At 7:45 a.m. Singapore time, spot gold fell 0.4% to $5,065.56 per ounce. Silver weakened 0.8% to $83.60, platinum fell 1%, and palladium fell 1.5%. Meanwhile, the Bloomberg Dollar Index was relatively flat after closing down 0.1% in the previous session. (asd)
Source: Newsmaker.id
