Gold prices maintained their price level above $5,000 despite the latest US jobs data release recording a figure that exceeded expectations, and also triggered a Fed tone reset in early 2026.
At 9 am, gold prices were at $5,050, down 0.67% since it opened in early trading Thursday in the Asian session.
The US Non-Farm Payrolls (NFP) report, which was delayed due to a three-day government shutdown, recorded stronger-than-expected job growth, with an increase of 130,000 in January, far exceeding the estimate of 48,000 and higher than the 70,000 in December.
As a result, the unemployment rate fell to 4.3% from 4.4%, thus triggering a market reaction that now expects the Federal Reserve (Fed) to cut interest rates for the first time as early as July.
In other developments, Kansas City Fed President Jeffrey Schmid reiterated his aggressive stance on monetary policy by rejecting proposals to cut interest rates.
He believed that such a move risked allowing inflation to remain high for a longer period, and stressed that monetary policy should still remain tight as long as inflation is close to 3%.
However, gold prices continued to be supported by continued central bank purchases, expectations of currency depreciation, and political uncertainty stemming from the White House's controversial policies.
A Bloomberg report revealed that US President Donald Trump is considering withdrawing from the USMCA trade pact, a move that could potentially threaten global trade relations worth nearly $2 trillion.
This development is expected to increase uncertainty among investors and world leaders.
Meanwhile, Ukrainian President Volodymyr Zelenskyy announced that territorial issues would be the main focus of the next negotiations with the United States, thus hinting at the possibility of a territorial compromise to end the long-running conflict.
