NEW YORK, Jan 7, 2026, 14:33 EST — Regular session
Gold fell more than 1% on Wednesday as investors locked in profits after a two-day surge, with traders waiting on Friday’s U.S. jobs report to test expectations for Federal Reserve rate cuts. Spot gold was down 0.9% at $4,445.32 an ounce by 1:36 p.m. ET after sliding as low as $4,422.89, and U.S. gold futures settled 0.7% lower at $4,462.50. Spot silver slid 4.1% to $77.93.
The metal has been whipsawed by Washington’s intervention in Venezuela and the fallout from President Nicolas Maduro’s capture, which revived demand for havens. “The situation around Venezuela has clearly reactivated safe-haven demand,” said Alexander Zumpfe, a precious metals trader at Heraeus Metals Germany. Gold hit an all-time high of $4,549.71 on Dec. 26 and finished 2025 up 64%, its best annual gain since 1979. Reuters
Morgan Stanley expects gold could reach $4,800 by the fourth quarter of 2026 as falling rates and official-sector buying keep demand firm. Kitco Metals analyst Jim Wyckoff said “Precious metals traders see more risk on the horizon” than stock and bond investors. Reuters
U.S. labour data on Wednesday offered mixed signals for the gold price forecast. Job openings fell 303,000 to 7.146 million in November, and ADP said private payrolls rose 41,000 in December, undershooting forecasts for 47,000. The dollar was little changed; Olivier Bellemare, vice president of options trading and structured products at Monex Canada, called the price action “more tactical” without firmer policy updates. Reuters+2Reuters+2
Treasury yields drifted lower, easing some pressure from the dollar. The benchmark 10-year yield last traded at 4.142%, down 3.7 basis points, or about 0.04 percentage point, on the day as investors weighed the data. Gold pays no interest, so lower yields can make it more attractive on the margin.
Buying from central banks remains a pillar for longer-term bulls. China’s central bank extended its gold-buying streak to 14 months in December, Bloomberg reported, underscoring official demand even at near-record prices.
Gold-linked assets fell in step. SPDR Gold Shares was down about 1% in afternoon New York trade, while Newmont slipped about 1.3%.
Chart watchers say the market needs a clean break above $4,500 to reopen the highs. Forex.com flagged liquidity above the December all-time high around $4,550, while Wednesday’s low near $4,423 has become the first support.
But the run has been volatile, and a sharp rebound in the dollar or easing tension around Venezuela could unwind part of the safe-haven bid. A Reuters poll of currency strategists also pointed to Fed-independence worries as part of the backdrop for a softer dollar outlook, a mix that can jolt gold either way.
Traders’ next hard stop is the U.S. Employment Situation report for December, due Friday, Jan. 9 at 8:30 a.m. ET, with CPI and real earnings data for December scheduled for Jan. 13.
