Gold prices remained firm above $2,900 per ounce, with traders holding back major moves ahead of the upcoming US jobs report, which could shape the outlook for Federal Reserve policy. The precious metal has seen strong support in recent weeks as investors seek safe-haven assets amid global economic uncertainty and shifting interest rate expectations.
Market participants are closely watching the Non-Farm Payrolls (NFP) report, set for release later this week, as a key indicator of the strength of the US labor market. A stronger-than-expected jobs report could fuel speculation that the Fed may keep rates higher for longer, potentially putting pressure on gold. On the other hand, signs of slowing job growth could reinforce expectations of eventual rate cuts, boosting demand for non-yielding assets like gold.
Despite the uncertainty, gold’s bullish trend has remained intact, supported by a weaker US dollar and declining Treasury yields. As concerns over economic slowdowns and geopolitical risks persist, investors have maintained interest in gold as a hedge against volatility. Analysts suggest that a sustained break above $2,900 could pave the way for further gains, especially if economic data supports a more dovish Fed stance.
Gold US Dollar 1-D Chart as of March 07, 2025 (Source: TradingView)
Meanwhile, central bank buying has also contributed to gold’s resilience. Several global central banks have continued to accumulate gold reserves, reinforcing demand amid concerns over currency stability and inflationary pressures. This long-term buying trend has helped offset some of the short-term volatility tied to interest rate expectations.
While traders remain cautious ahead of the jobs data, gold’s ability to hold above key support levels suggests that market sentiment remains largely positive. If the US labor report disappoints, gold could see renewed momentum toward fresh highs. However, stronger data could spark some profit-taking, at least in the short term.
For now, the focus remains on macroeconomic signals, with the US jobs report likely to set the next major move for gold. Investors are also monitoring Federal Reserve officials’ comments for further clarity on rate policy, which will be crucial in determining whether gold continues its ascent or faces near-term headwinds.
