Gold prices dipped on Thursday, as the dollar firmed after strong jobs report. China extended its gold-buying streak to a 15th consecutive month in January despite growing costs, official data showed.
The US government in January saw a smaller deficit than a year ago, while tariff collections surged and provided a reminder of how pivotal a long-awaited Supreme Court decision could be to federal budget.
Customs duties collected through tariffs totalled $30 billion for the month, putting the fiscal year-to-date tally at $124 billion. The efforts to rebalance trade help spur growth and inflation.
The US added 130,000 jobs in January, well above expectations of 55,000 additions. That reduced the likelihood of interest rate cuts by the Fed, pushing higher Treasury yields across the curve.
BCA Research maintains its long-term long gold positions, but warns against short-term volatility and another "meaningful pullback" in prices given overheating speculative momentum.
Central banks' purchases of gold unexpectedly declined 20% last year, said WCG. However, investment demand for gold surged, driven by ETF inflows as well as rising demand for gold bars.
Bullion was stuck in a tight range this week despite non-farm payrolls surprise. It seems unlikely that a breakout will occur before CPI release, so we see a moderate decline below0 $5,050.
Asset recap
As of market close on 11 February, among EBC major products, Micron Technology shares led gains. Morgan Stanley raised its price target to $450.00 from $350.00, maintaining an Overweight rating.
IBM saw a slump after rolling out a revamped FlashSystem storage lineup that is said is "co-run by agentic AI." Software stocks were hit again as investors debated how quickly new AI tools could reshape the industry.
The FTSE 100 rallied a fresh peak, outperforming European peers due to strong gains in miners, energy producers and homebuilders. Commodity prices continued its record run.
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