Gold prices rose slightly after mixed US non-farm payroll data.
2026-01-10 01:56:46
Spot gold edged higher during Friday's (January 9) US trading session as investors assessed mixed US jobs data. Spot gold traded around $4,490, after rebounding from the $4,400 area on Thursday.
Data released by the U.S. Bureau of Labor Statistics (BLS) showed that job growth slowed in December. The U.S. economy added 50,000 jobs, below market expectations of 60,000 and also below the revised 56,000 in November. Meanwhile, the unemployment rate fell slightly to 4.4% from 4.6%, lower than the expected 4.5%.
In terms of monetary policy, weaker-than-expected non-farm payrolls were offset by a lower unemployment rate, which boosted market confidence that the Federal Reserve would keep interest rates unchanged at its January 27-28 meeting. However, the market still expects about two rate cuts later this year. Gold typically benefits from a low-interest-rate environment because declining yields reduce the opportunity cost of holding the non-interest-bearing metal.
Looking ahead, market focus will shift to the preliminary reading of the University of Michigan's January Consumer Sentiment Index, including consumer expectations as well as short- and long-term inflation expectations.
The market will also be watching speeches by Richmond Fed President Thomas Barkin and Minneapolis Fed President Neel Kashkari for new clues about the outlook for monetary policy.
Market drivers: geopolitical risks, tariff rulings, and news from Federal Reserve leadership.
The market remains focused on rising geopolitical risks following the US's expanded regulations on Venezuelan oil exports. This comes after military action in Caracas. Renewed controversial comments from former US President Donald Trump regarding the annexation of Greenland have also unsettled market sentiment. Furthermore, escalating unrest in Iran and renewed tensions between Japan and China have exacerbated market caution, dampening risk appetite and thus supporting gold demand.
Trump tweeted on TruthSocial on Friday that Venezuela is releasing political prisoners and that the U.S. is working with Caracas to rebuild its oil and gas industry. He added that the planned second wave of attacks has been canceled, but U.S. ships will remain in place "to ensure safety." Trump also stated that he will meet with executives from major oil companies at the White House today, with related investments potentially reaching approximately $100 billion.
Markets are also focused on a Supreme Court hearing later Friday regarding the legality of the Trump administration's tariffs imposed under the International Emergency Economic Powers Act (IEEPA). This comes after a lower court ruled that the government exceeded its authority in imposing comprehensive tariffs.
The market is also focused on news regarding the next Federal Reserve Chairman. Reports indicate that Trump stated he has "made a decision" but has not yet discussed it. Treasury Secretary Scott Bessent subsequently stated that Trump has not yet met with any of the four final candidates, and an announcement is likely to be made around the time of his attendance at the Davos Forum in two weeks.
On the data front, figures released on Thursday showed that initial jobless claims for the week ending January 3 rose slightly to 208,000, slightly below market expectations of 210,000; Challenger job cuts in December fell to 35,553, the lowest level since July 2024. Furthermore, the U.S. trade deficit narrowed sharply to $29.4 billion in October, the smallest since June 2009, far below the expected $58.1 billion.
Technical Analysis: Spot gold targets $4,500
(Spot gold daily chart source: FX678)
From a technical perspective, spot gold is in a consolidation phase, stabilizing after its recent rise. The overall bias remains bullish, as gold prices are holding above the rising 21-day simple moving average (approximately $4,387).
On the downside, the $4,400-$4,380 range forms the first key support area. A break below this area could see a test of the 50-day simple moving average (around $4,231), opening up room for further pullback.
On the upside, $4,500 is the immediate resistance level. A sustained break above this level would shift focus back to the record high (around $4,549) or even higher.
The Relative Strength Index (RSI) is around 64, remaining above the midline, indicating that bullish momentum remains. The Average Directional Index (ADX) is 22, showing a moderate trend and weakening from previous highs, suggesting that further momentum is slowing.
Data released by the U.S. Bureau of Labor Statistics (BLS) showed that job growth slowed in December. The U.S. economy added 50,000 jobs, below market expectations of 60,000 and also below the revised 56,000 in November. Meanwhile, the unemployment rate fell slightly to 4.4% from 4.6%, lower than the expected 4.5%.
In terms of monetary policy, weaker-than-expected non-farm payrolls were offset by a lower unemployment rate, which boosted market confidence that the Federal Reserve would keep interest rates unchanged at its January 27-28 meeting. However, the market still expects about two rate cuts later this year. Gold typically benefits from a low-interest-rate environment because declining yields reduce the opportunity cost of holding the non-interest-bearing metal.
Looking ahead, market focus will shift to the preliminary reading of the University of Michigan's January Consumer Sentiment Index, including consumer expectations as well as short- and long-term inflation expectations.
The market will also be watching speeches by Richmond Fed President Thomas Barkin and Minneapolis Fed President Neel Kashkari for new clues about the outlook for monetary policy.
Market drivers: geopolitical risks, tariff rulings, and news from Federal Reserve leadership.
The market remains focused on rising geopolitical risks following the US's expanded regulations on Venezuelan oil exports. This comes after military action in Caracas. Renewed controversial comments from former US President Donald Trump regarding the annexation of Greenland have also unsettled market sentiment. Furthermore, escalating unrest in Iran and renewed tensions between Japan and China have exacerbated market caution, dampening risk appetite and thus supporting gold demand.
Trump tweeted on TruthSocial on Friday that Venezuela is releasing political prisoners and that the U.S. is working with Caracas to rebuild its oil and gas industry. He added that the planned second wave of attacks has been canceled, but U.S. ships will remain in place "to ensure safety." Trump also stated that he will meet with executives from major oil companies at the White House today, with related investments potentially reaching approximately $100 billion.
Markets are also focused on a Supreme Court hearing later Friday regarding the legality of the Trump administration's tariffs imposed under the International Emergency Economic Powers Act (IEEPA). This comes after a lower court ruled that the government exceeded its authority in imposing comprehensive tariffs.
The market is also focused on news regarding the next Federal Reserve Chairman. Reports indicate that Trump stated he has "made a decision" but has not yet discussed it. Treasury Secretary Scott Bessent subsequently stated that Trump has not yet met with any of the four final candidates, and an announcement is likely to be made around the time of his attendance at the Davos Forum in two weeks.
On the data front, figures released on Thursday showed that initial jobless claims for the week ending January 3 rose slightly to 208,000, slightly below market expectations of 210,000; Challenger job cuts in December fell to 35,553, the lowest level since July 2024. Furthermore, the U.S. trade deficit narrowed sharply to $29.4 billion in October, the smallest since June 2009, far below the expected $58.1 billion.
Technical Analysis: Spot gold targets $4,500
(Spot gold daily chart source: FX678)
From a technical perspective, spot gold is in a consolidation phase, stabilizing after its recent rise. The overall bias remains bullish, as gold prices are holding above the rising 21-day simple moving average (approximately $4,387).
On the downside, the $4,400-$4,380 range forms the first key support area. A break below this area could see a test of the 50-day simple moving average (around $4,231), opening up room for further pullback.
On the upside, $4,500 is the immediate resistance level. A sustained break above this level would shift focus back to the record high (around $4,549) or even higher.
The Relative Strength Index (RSI) is around 64, remaining above the midline, indicating that bullish momentum remains. The Average Directional Index (ADX) is 22, showing a moderate trend and weakening from previous highs, suggesting that further momentum is slowing.
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