Gold Price Forecast: XAU/USD Slips Below $5,050 Ahead Of US Jobs Data

Market Overview  
Gold retreated to around $5,035 per ounce after two days of gains. The dip reflects improved investor appetite for equities, with the S&P 500 rallying near all-time highs. Traders are cautious ahead of the US January employment report, expected to provide clarity on Federal Reserve policy direction.  

Factors Driving Prices  
The pullback is largely attributed to profit-taking and risk-on sentiment, as investors shift toward equities. However, sustained demand from global central banks and concerns over inflation trends are expected to limit downside risks. The upcoming US jobs and inflation data will be key in shaping gold’s short-term trajectory.  

Key Highlights  

• Gold fell to $5,035 in early Asian session  
• Risk-on sentiment boosted equities, pressuring gold  
• Central bank demand continues to support prices  
• US jobs report due Wednesday, inflation data later this week  
• S&P 500 extended rally near record highs  

Conclusion  
Gold’s dip below $5,050 reflects short-term market sentiment, but strong institutional demand and macroeconomic uncertainty may stabilize prices. Traders are closely watching US economic data for signals on Fed policy, which will determine gold’s next move.  

Sources: FXStreet, RoboForex, XS Forecasts   [FXStreet]