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The Emirates News Agency reported that gold prices declined by more than 1 percent on Thursday as investors adjusted positions following the release of stronger-than-expected U.S. economic data. Spot gold fell as much as 1.7 percent during trading sessions before paring some losses, with the drop coming after a period of elevated prices earlier in the week. Market observers noted the movement reflected shifting bets on U.S. monetary policy, though the metal retained gains accumulated over the longer term.
According to a Globe and Mail assessment published shortly after the session, gold reached a near one-week low on Thursday after strong U.S. labor data dampened hopes of near-term Federal Reserve rate cuts. Spot gold slipped 2.8 percent lower to $4,938.69 per ounce by mid-afternoon, while U.S. gold futures for April delivery settled 2.9 percent lower at $4,948.40 per ounce. The data showed nonfarm payrolls rose by 130,000 jobs in January, exceeding forecasts and pushing the unemployment rate down to 4.3 percent.
Initial jobless claims fell to 227,000 in the week ended February 7, a Reuters compilation of Labor Department figures indicated, reinforcing views that policymakers might keep rates elevated for longer. This development contributed to a firmer dollar, which typically pressures gold by making it more expensive for foreign buyers. Analysts at City Index and FOREX.com stated that many investors had placed stop-loss orders below the $5,000 level, and the breach triggered accelerated selling.
A separate Reuters dispatch from early 2026 noted that gold had experienced heightened volatility throughout the year, including record peaks above $5,500 per ounce before corrective moves took hold. Despite Thursday’s decline, the metal’s performance remained supported by broader factors such as geopolitical uncertainties and central bank buying, a World Gold Council summary showed in prior quarterly data. Investors now await Friday’s U.S. inflation release for further direction on the Federal Reserve’s path.
Mining.com.au reported that similar drops in October followed hotter-than-expected consumer price index figures, with September inflation rising 0.6 percent month-on-month and lifting odds of a December rate hike above 50 percent at the time. Higher interest rates reduce the appeal of non-yielding assets like gold, according to metals trading director David Meger at High Ridge Futures. The pattern has repeated across multiple sessions where economic resilience data emerged.
FXEmpire analysis published on October 21 placed spot gold near $4,114 with bearish pressure persisting below $4,154, citing expectations of a Federal Reserve hold at the late-October meeting and a potential hike in December now priced at around 94 percent. The regional cold-chain and commodity storage dynamics have also played indirect roles in supporting gold as an inflation hedge, though recent oil price strength above $100 per barrel has complicated the outlook. Thursday’s move fits within a year that has seen gold test both record highs and sharp pullbacks.
