Gold climbs higher despite stronger NFP reading

• XAUUSD hits above $2,680 in fourth consecutive session of gains
   
• Safe-haven demand rises amid market instability
   
• US NFP data – stronger-than-expected
   
• Gold ETF inflows grow

Gold prices climbed above $2,680 per ounce, marking their fourth consecutive session of gains and positioning for the best week since mid-November.

The precious metal is benefiting from increased demand for safe-haven assets amidst global market turbulence, including instability in the UK’s bond and currency markets, as well as concerns over a resurgence in inflation and geopolitical risks.

The latest US non-farm payrolls (NFP) report revealed a stronger-than-anticipated 256,000 jobs added in December, far exceeding forecasts of 160,000, with the unemployment rate dipping to 4.1% versus the expected 4.2%.
 

This robust labor market performance could temper hopes for aggressive Federal Reserve rate cuts in 2025.

However, any signs of inflationary risks easing might encourage a dovish Fed pivot.

Investors are now going to switch their attention towards the next weeks US CPI reading due Wednesday, January 16.

Adding to the bullish sentiment, the World Gold Council reported notable inflows into physically backed gold ETFs for the first time in years, fueled by surging Asian demand and narrowing European outflows.

These dynamics highlight the complex forces underpinning gold’s stellar start to 2025.