FX.co ★ Gold Reclaims Gains After Jobs Data

Gold prices surged above $5,120 per ounce on Friday after weaker-than-expected February labor market data heightened fears of an impending economic slowdown, driving investors into non-yielding safe-haven assets despite persistent inflation pressures. The US unemployment rate rose to 4.4%, exceeding forecasts of 4.3% and highlighting the worsening condition of the domestic labor market following an unexpected decline in non-farm payrolls. This disappointing data triggered a rapid shift in market sentiment, with traders now weighing an elevated risk of recession against the Federal Reserve’s restrictive interest rate stance amid renewed concerns over inflation. Although inflationary pressures linked to the Middle East conflict remain in focus, gold’s appeal as a hedge against systemic economic instability has more than offset the drag from investors’ demand for US dollar liquidity.