Gold Prices Rise as Strong U.S. Jobs Data and Iran Tensions Boost Safe-Haven Demand
Gold prices moved higher on Wednesday as investors assessed the impact of a stronger-than-expected U.S. January jobs report. Demand for safe-haven assets also increased amid escalating tensions between the United States and Iran.
At 14:47 ET (19:47 GMT), spot gold gained 1.2% to $5,087.31 per ounce. Meanwhile, April gold futures climbed 1.6% to $5,111.66 per ounce.
Other precious metals followed. Spot silver jumped 4.5% to $84.4145 per ounce, while spot platinum rose 2.2% to $2,146.90 per ounce.
Strong Nonfarm Payrolls Reduce Rate Cut Expectations
U.S. government data showed that nonfarm payrolls increased by 130,000 in January, significantly above the forecast of 66,000. The unemployment rate also edged down to 4.3% from 4.4% in December 2025.
The upbeat labor market data led traders to scale back expectations for Federal Reserve rate cuts. Typically, reduced prospects for lower interest rates can weigh on gold, since non-yielding assets tend to benefit when borrowing costs decline.
According to José Torres, senior economist at Interactive Brokers, commodities broadly advanced as markets reacted to stronger hiring and economic momentum.
However, uncertainty around U.S. monetary policy remains elevated. President Donald Trump recently nominated Kevin Warsh as the next Federal Reserve chairman. Warsh is considered less dovish, a perception that contributed to heavy losses in precious metals markets in late January.
Inflation Data in Focus
Investors are now turning their attention to upcoming consumer price index (CPI) data due Friday. Alongside employment figures, inflation remains one of the Federal Reserve’s primary considerations when adjusting interest rates.
Recent volatility has left metals searching for direction. Gold prices slipped slightly on Tuesday after softer-than-expected U.S. retail sales data for December.
Analysts at ANZ noted that gold’s recent rally paused amid concerns the metal had advanced too rapidly. With speculative positioning largely cleared from the market, traders are looking for a fresh catalyst. Weak U.S. economic data has provided some support.
Warsh’s nomination earlier this year triggered a stronger U.S. dollar, leading to one of the sharpest pullbacks in gold and silver prices in recent history. The dollar index was largely unchanged on Wednesday.
Geopolitical Risks Support Safe-Haven Assets
Geopolitical tensions also underpinned precious metals. Reports indicated that the U.S. was preparing to deploy a second aircraft carrier to the Middle East, according to U.S. officials cited by The Wall Street Journal.
President Donald Trump stated on Truth Social that he urged Israeli Prime Minister Benjamin Netanyahu to continue negotiations with Iran to determine whether an agreement could be reached.
The combination of geopolitical uncertainty, resilient U.S. jobs data, and shifting Federal Reserve expectations continues to shape the outlook for gold and silver prices.
