Gold's stabilization comes amid ongoing geopolitical uncertainty, particularly in the Middle East, where tensions and oil prices remain high, impacting market sentiment.
Gold's price volatility is influenced by real interest rates, which are the most significant factor affecting gold's appeal. When yields rise faster than inflation, gold becomes less attractive.
The dollar declined against foreign currencies, stocks in Asia and Europe broadly sold off, and S&P 500 futures were down 0.22% before the open in New York as investors began to realize that the fallout from the U.S. Supreme Court's tariff decision, and President Trump's reaction to it, is going to be more complex than traders initially thought. Goldman Sachs also reported that its in-house "Risk Appetite Indicator" had sunk back from its recent peak.
Futures are trading higher after a wild Wednesday that saw the market rally hard on the open on the non-farm payrolls print that blew away estimates, despite a significant decline in government jobs. However, the "buy the rumor, sell the news" cliche came in fast and strong, quickly turning the rally into a big sell-off. While stocks rallied off late-morning lows, all major indices ended the day just modestly lower.
Gold remained in a consolidation zone on Thursday as the market reacted to resilient US data and mounting geopolitical uncertainty. On the macro front, stronger-than-expected nonfarm payrolls reduced immediate fears of labour market deterioration, weighing on gold. However, markets still anticipate two rate cuts this year. Attention now shifts to upcoming inflation data, which could reshape expectations. A stronger-than-expected print may lift yields and pressure gold, while signs of cooling prices would reinforce dovish monetary policy expectations, supporting the metal.
"I've been looking for a blow-off in equities for over three years now - followed by the worst crash since 1929," Mark Spitznagel, the founder and chief investor of Universa Investments, told Business Insider in a recent email.
Futures are trading mixed this morning after a dreadful day across Wall Street, with all major indices closing lower except the Russell 2000. What began in late December and has gained considerable traction recently is the narrative of a broad rotation out of technology stocks. For the last three years, technology stocks, led by the Magnificent 7, have marched the S&P 500 to three consecutive years of double-digit gains.
People reset their finances, act on bonuses, and look for stability at the beginning of a new year, so January is usually a busy month for us. However, this year there has been a significant increase in our gold sales for the first half of January - proof that demand for this precious metal isn't slowing down any time soon.
The surge in the gold price is showing no sign of abating, as bullion continues to soar. Gold has jumped over the $5,500 an ounce level this morning, just three days after hitting $5,000 for the first time, taking its gains so far this year to almost 30% (!). It powered higher as investors continue to rush into safe haven assets, looking for protection against geopolitical and economic uncertainty.
On Sunday, gold surpassed $5,000 per troy ounce-the first time it has ever done so. The precious yellow metal climbed to $5,107 on Monday morning before paring back slightly to its current price of $5,082 per ounce, as of this writing. Gold's most recent milestone is just the latest example of the good run the precious metal has had since 2025. During that calendar year, gold's price surged 64%-its highest single-year gain since 1979.
Markets reacted with speed and force. Gold jumped as much as 2.1% to a record $4,690 per troy ounce, while silver surged 4.4% as investors rush into havens. European equities opened sharply lower, with the Stoxx Europe 600 down 1.5%. Read more related news: Trump warns Norway he will not 'think exclusively about peace' US futures tracking the S&P 500 and Nasdaq 100 fell 0.9% and 1.2% respectively, even with US cash markets closed for Martin Luther King Jr Day.
