Gold prices were volatile during intraday trading on Tuesday as investors scrutinized the latest US NFP jobs report, with labor market weakness pushing gold to a record intraday high of $4,335.
At 9.15am, gold was at $4,316, up 0.34% since it opened early Wednesday in Asian trading.
The latest data from the Bureau of Labor Statistics (BLS) painted a mixed picture for the US economy. While the labor market for November showed hiring exceeding expectations, the Unemployment Rate jumped to its highest level since 2021.
While the data supports the need for monetary easing, the market remains cautious. According to CME FedWatch (Capital Edge) data, the probability of a January 2026 interest rate cut remains low at around 25%.
Meanwhile, the US Census Bureau's Retail Sales report showed consumer spending remained resilient despite a flat October reading. Consumers are now beginning to feel the brunt of rising prices for imported goods, food, and furniture linked to the impact of the White House administration's implementation of tariffs.
The yellow metal managed to reclaim the $4,300 level ahead of last week's Federal Reserve (Fed) meeting.
While hopes for Russia-Ukraine peace talks briefly pressured gold prices, this safe-haven asset has regained support after the talks reportedly stalled.
The Kremlin rejected Kyiv's 20-point peace plan, re-raising geopolitical risks.
Traders are now turning their attention to a series of critical data releases on the economic calendar, particularly the Initial Jobless Claims and the Consumer Price Index (CPI) reports due this Thursday.
