Gold Slightly Weakens, Iran Risks a Shield; Focus on CPI
Gold prices (XAU/USD) moved flat, tending to weaken slightly on Thursday (February 12th), as the market reassessed the chances of a Fed interest rate cut following stronger US employment data. In recent trading, gold prices were around $5,075/oz (down ±0.18%), still comfortably within this week's consolidation range of $5,000–$5,100.
The main trigger came from the January Nonfarm Payrolls (NFP) data, which showed 130,000 new jobs and a drop in the unemployment rate to 4.3%—a combination that makes rapid monetary easing increasingly unlikely. However, weekly jobless claims came in at 227,000, slightly above expectations, but still reflecting a relatively solid labor market. This prompted investors to opt for safe havens while awaiting the next catalyst. Because gold does not yield a yield, the "higher-for-longer" narrative typically acts as a brake on price increases, leading the market to adopt a wait-and-see approach rather than aggressive buying.
However, pressure on gold hasn't exploded, as the US dollar hasn't continued its strong rally. The dollar index (DXY) is currently stuck around 96.835—still near its weekly low, so it's not strong enough to "lock" gold into a deep decline.
On the risk side, US-Iran tensions continue to maintain safe-haven demand. The Wall Street Journal reported that the Pentagon is preparing a second aircraft carrier strike group for possible deployment to the Middle East if nuclear negotiations with Iran fail—a factor that has helped prevent a deeper correction in gold ahead of the US CPI release.
Source: Newsmaker.id
