Gold News: Prices Hold Near Record Highs as Traders Await Key US Jobs Report

Gold Prices Hold Firm Ahead of Key US Jobs Report

Gold prices edged higher on Friday, hovering near record highs ahead of the U.S. Non-Farm Payrolls (NFP) report. Traders are closely watching whether prices will break above Wednesday’s peak of $2,882.31 or face resistance amid overbought conditions. A failure to extend gains could push prices back toward the key support at $2,807.26, with further downside risk toward $2,772.31 if selling accelerates.

Recent market behavior suggests a “buy the dip” sentiment remains intact, reducing the likelihood of a near-term trend reversal. However, the upcoming jobs data will be a crucial factor in determining the next major move for gold.

At 12:04 GMT, XAU/USD is trading $2867.04, up $11.11 or +0.39%.

Traders Focus on Jobs Data for Fed Rate Signals

The NFP report is expected to show job growth of 169,000, a slowdown from December’s 256,000 gain but in line with recent trends. The unemployment rate is projected to remain at 4.1%. Wage growth is also anticipated to ease, with a monthly increase of 0.3% and an annual rise of 3.7%, the lowest in months.

If the data confirms a cooling but stable labor market, the Federal Reserve may maintain a cautious stance on rate cuts. However, any unexpected weakness—such as a rise in unemployment or downward revisions to past job figures—could accelerate expectations for monetary easing, supporting gold prices.

Tariff Concerns Add to Gold’s Safe-Haven Appeal

The new U.S. administration’s aggressive tariff policies are fueling concerns over global economic growth. President Trump’s decision to impose new duties on China and extend a temporary reprieve to Mexico and Canada has heightened market uncertainty. This has bolstered demand for gold as a hedge against economic instability.

Chicago Fed President Austan Goolsbee acknowledged that while a strong economy allows for potential rate cuts, ongoing trade tensions add another layer of caution for policymakers. Any signs of labor market deterioration could push the Fed toward easing sooner than expected, which would be bullish for gold.

Physical Demand Remains Weak Despite High Prices

Despite gold’s strong performance, physical demand in major consumer markets remains subdued. Record-high prices have dampened buying interest in India and China. The Perth Mint reported a 10-month low in gold sales for January, while silver sales plunged by 61% compared to the previous month. This suggests that while investment demand is strong, the jewelry and retail sectors are facing pressure from elevated price levels.

Market Outlook: Gold Eyes Upside on Weak Jobs Data Potential

Gold’s next move hinges on the NFP report. If job growth falls short of expectations or revisions show a weaker labor market, traders will likely price in earlier Fed rate cuts, driving gold higher. This scenario could push prices beyond $2,882.31, opening the door to new all-time highs.

Conversely, a stronger-than-expected jobs report with steady wage growth could reinforce the Fed’s wait-and-see approach, lifting Treasury yields and the U.S. dollar, which would weigh on gold. Key support levels at $2,807.26 and $2,772.31 will be critical in case of a pullback.

Overall, gold remains in an uptrend, with the bullish case strengthening if the jobs data hints at a slowing economy and rising Fed rate cut odds.

More Information in our unemployment rate.