Gold sinks below $5,000 as strong US jobs data triggers sell-off
Gold fell sharply on Thursday, breaking below $5,000 per ounce after U.S. labour data reinforced the case for higher-for-longer interest rates. The drop accelerated as stop-loss orders were triggered under the round-number threshold, sending prices to a near one-week low. Spot gold was last down 2.7% at $4,941.47 by 11:50 a.m. ET (16:50 GMT), while U.S. futures slid to $4,962.10.
What moved the market
Fresh figures showed a firm U.S. job market. January nonfarm payrolls rose by 130,000 after a downwardly revised 48,000 in December, and the unemployment rate edged down to 4.3%. Weekly jobless claims fell to 227,000 for the period ended February 7. Strong employment reduces the urgency for the Federal Reserve to cut rates, which weighs on non-yielding bullion.
According to analyst Fawad Razaqzada of City Index and FOREX.com, prior volatility likely left many stop orders clustered just below $5,000 and above $5,100. The breach set off “cascading-like” selling.
Gold below $5,000: key levels and context
The $5,000 handle has been a psychological pivot this year as prices tested record territory. Just yesterday, spot gold traded above $5,100 before easing. Today’s drop follows a volatile fortnight in which bullion repeatedly crossed that line amid shifting rate expectations.
What traders are watching next
Investors now turn to Friday’s U.S. CPI report. Some desks expect headline inflation to slow toward 2.5% year-on-year. A softer print could revive near-term rate-cut bets and support gold, said Peter Grant of Zaner Metals.
Other precious metals
Silver tumbled 10.2% to $75.42 per ounce. Platinum fell 6.1% to $2,001.79, while palladium lost 3.9% to $1,634.14. Moves across the complex reflected a stronger dollar and risk reduction into macro data.
In sum, resilient U.S. labour readings firmed the rates outlook and flipped momentum below a critical round number, leaving gold on the defensive ahead of inflation data
