Editor’s Note
This article has been updated to reflect the latest spot gold price movement and to include the performance of US gold futures.
Gold prices fell to a near one-week low on Thursday after strong US labor market data dampened hopes for imminent interest rate cuts by the Federal Reserve. A break below the $5,000 per ounce mark intensified the losses as selling pressure mounted.
The spot gold price fell 2.7% to $4,941.47 per ounce by 11:50 AM ET (16:50 GMT). This brought the precious metal to its lowest level since February 6 early in the session.
US gold futures for April delivery lost 2.7%, trading at $4,962.10 per ounce.
Data released on Wednesday showed the US labor market started 2026 stronger than expected, reinforcing the view that the central bank could keep interest rates higher for longer.
Non-farm payrolls increased by 130,000 in January, following a downwardly revised increase of 48,000 in December. The unemployment rate edged down to 4.3%.
Initial jobless claims fell to 227,000 in the week ending February 7, according to data released on Thursday.
Robust labor market conditions bolster the Fed’s confidence in the economy and allow policymakers to keep rates high to further curb inflation. Gold faces pressure in a high-interest-rate environment as it does not yield ongoing returns.
Investors are now awaiting US inflation data on Friday for further clues on the Fed’s monetary policy path.
Silver fell 10.2% to $75.42 per ounce after rising 4% on Wednesday. Spot platinum lost 6.1% to $2,001.79 per ounce, while palladium shed 3.9% to $1,634.14.