Gold slips as strong US jobs report dims rate-cut prospects

Gold dipped after robust US jobs data reduced expectations the Federal Reserve will move quickly to cut interest rates.

Bullion retreated as much as 0.8% on Thursday, after adding 1.2% in the previous session. US payrolls rose by the most in more than a year and the unemployment rate fell unexpectedly in January, suggesting the American labor market continued to stabilise at the start of 2026.

The data may reinforce Fed officials’ inclination to keep interest rates on hold for now, with many traders appearing to push out their timeline for the next cut to July from June. Lower interest rates are a tailwind for precious metals, which don’t pay interest.

Despite falling, gold continued to hold above $5 000 an ounce and has clawed back around half of the losses sustained during a historic rout at the turn of the month. The precious metal surged to a record high above $5 595 in late January before a wave of speculative buying saw the rally get overheated. Bullion then plunged about 13% in two sessions.

Many banks expect gold to resume its upward trend as the reasons that underpinned its earlier gains are still intact — geopolitical upheaval and attacks on the Fed’s independence, as well as a shift away from traditional assets such as currencies and sovereign bonds. BNP Paribas SA is backing bullion to get to $6 000 an ounce by the end of the year, while Deutsche Bank AG and Goldman Sachs Group Inc. also have bullish forecasts.

“The market has transitioned away from that acceleration phase into a more consolidation-driven regime,” said Christopher Wong, a strategist at Oversea-Chinese Banking Corp. “Gains are likely to be more measured and increasingly dependent on macro validation rather than momentum alone.”

Silver, meanwhile, fell as much as 3.2% on Thursday. The white metal has always been subject to more violent price swings than gold, due to its smaller market and lower liquidity, but recent moves – the most volatile since 1980 – have stood out for their scale and speed. Silver is down around a third from an all-time peak hit on January 29.

Thursday’s pullback follows a leap of 4.3% in the previous session, after a report by the Silver Institute showed the market would be in deficit for a sixth consecutive year as surging investment outweighs wilting demand for jewelry, and efforts to curb use in the solar sector.

In China, supplies are still pinched as investment and industrial demand drain stockpiles. In a move that could stem outflows from its warehouses, the Shanghai Futures Exchange will prevent certain businesses that hold silver futures for hedging purposes from carrying their contracts through to delivery.

Spot gold was 0.3% lower at $5 069.65 an ounce as of 1:04 p.m. in Singapore. Silver fell 0.6% to $83.78 an ounce. Platinum dropped 0.3% and palladium rose 0.3%. The Bloomberg Dollar Spot Index, a gauge of the US currency, was flat.

© 2026 Bloomberg

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