Gold price under pressure: XAU/USD falls below 4,450 – Market participants await US employment report

While markets in Asia wake up on Thursday morning, gold prices are showing a significant decline. After rebounding to the 4,500 mark, buyers are now offloading their positions, pushing the precious metal back toward $4,450. The decline reflects less fear and more tactical profit-taking ahead of a labor market-intensive trading weekend.

Geopolitical tensions are losing their edge

An interesting development is emerging: after bond markets reacted strongly to geopolitical uncertainties in recent days—including the recent events in Venezuela—this risk premium now seems to be diminishing. Traders apparently assess short-term tensions with less urgency, increasing pressure on the traditional safe haven, gold.

David Meger, a metals trading expert at High Ridge Futures, characterizes the current movement precisely: “We are seeing an organic profit-taking after the recent upward move.” Demand for classic safe positions is noticeably waning.

The key catalyst: employment data in focus

The upcoming US data will be the main driver for the further course of gold prices. On Thursday, the series begins with weekly initial unemployment claims. The real test comes on Friday: the December US employment report is expected—consensus is around 60,000 new jobs with an unemployment rate of 4.5%.

If this report turns out weaker than forecasted, it would have a decisive consequence: market interest rates would come under pressure, which could lead the Federal Reserve to adopt a more dovish monetary policy. For gold, this would be a strong support signal, as the precious metals complex benefits from falling real interest rates—since gold, as a zero-yield asset, becomes more attractive the lower the opportunity costs.