Gold holds above $5,000 despite strong NFP and rising US yields

💡 DMK Insight

Gold’s firm hold above $5,000 signals a shift in market sentiment following the US jobs report. The stronger-than-expected jobs data has traders recalibrating their expectations for the Federal Reserve’s monetary policy, particularly as we head into 2026. This could mean a less dovish approach from the Fed, which historically leads to a stronger dollar and potentially weaker gold prices. However, with XAU/USD currently at $5,054, the metal’s resilience suggests that investors are still seeking safe havens amid economic uncertainty. Watch for key support levels around $5,000; if it holds, it could indicate bullish momentum. On the flip side, if the Fed signals a more aggressive tightening cycle, gold could face downward pressure. Traders should monitor the upcoming Fed meetings and any comments from officials regarding interest rates. Additionally, keep an eye on correlated assets like the US dollar index (DXY) for further insights into gold’s trajectory. The immediate focus should be on how gold reacts to any shifts in Fed policy, particularly as we approach significant economic data releases in the coming weeks.