Gold steadies as investors eye geopolitics and US jobs data

WASHINGTON: Gold prices stayed mostly steady on Wednesday after earlier gains as investors kept an eye on geopolitical events and upcoming US jobs data, which could influence future interest rate decisions.

Spot gold was around $4,932 per ounce after rising as much as 3.1 per cent earlier in the session, and on Tuesday it jumped 5.9 per cent.

US gold futures for April delivery were $4,956 per ounce, up 0.4 per cent, with analysts saying that gold is consolidating recent gains with resistance expected at $5,050–$5,100.

The metal had a steep two-day drop of more than 13 per cent earlier in the week following a record high of $5,595 on January 29, but it is still up over 16 per cent so far this year.

Some experts, like Marex’s Edward Meir, suggest gold may enter a sideways trading phase, moving within a range rather than making sharp swings in the coming weeks.

Geopolitical factors are also in focus as Iran and the US are set to hold talks in Oman on Friday, while tensions remain high after the US shot down an Iranian drone near an aircraft carrier in the Arabian Sea on Tuesday.

On the US economic front, private job growth fell short with ADP data showing only 22,000 jobs added in January versus an expected 48,000.

President Trump signed a spending bill on Tuesday, ending a partial government shutdown that delayed key labour data. Nonfarm payroll numbers have not been released yet, but investors are expecting at least two interest rate cuts in 2026.

Low-interest-rate environments typically benefit gold as it does not earn interest itself.

Goldman Sachs sees potential for gold to rise above its $5,400 per ounce forecast for December 2026, driven by central bank buying, ETF inflows, and strong private-sector demand.

Meanwhile, Trump spoke with China’s President Xi Jinping about geopolitics ahead of his planned visit to China in April, shortly after Xi held talks with Russian President Vladimir Putin.

Spot silver rose 3 per cent to $87.65 an ounce on Wednesday, rebounding from a month-low of $71.33 on Monday after hitting a record high of $121.64 last Thursday, and silver is up more than 27 per cent this year.