Gold experienced a volatile trading session, initially declining before rebounding strongly to around $4,900 per ounce. This recovery was fueled by weaker-than-expected US labor data, increasing bets on Federal Reserve rate cuts later in the year, and ongoing geopolitical tensions involving Iran. Concerns about a potential selloff in tech equities also contributed to the metal’s safe-haven appeal.
- Gold rose to around $4,870 per ounce, reversing earlier losses.
- US job cuts reached a high for January since 2009.
- Initial jobless claims rose, and ADP payrolls missed forecasts.
- Markets are pricing in a potential Fed rate cut as early as June.
- The White House prefers a diplomatic solution with Iran, but military options remain.
- Geopolitical risks continue to support safe-haven demand for gold.
- Weaker US labor data reinforced expectations for Federal Reserve rate cuts in 2026.
- Some analysts expect the incoming Fed Chair to be less dovish.
- US Dollar selling provided an additional lift to the precious metal.
Recent economic data and geopolitical developments appear to be creating a supportive environment for gold. The possibility of lower interest rates, combined with global uncertainties, is driving investors towards safe-haven assets. However, expectations of a less dovish stance from the incoming Fed Chair could potentially limit future gains. Overall, these factors suggest a complex outlook, with potential for both upward and downward price movements.