Gold price plunges below $5,000/ounce after strong US jobs data
Gold prices fell below $5,000/ounce after stronger US jobs data reduced hopes for Fed rate cuts. The market faces ongoing selling pressure amid high volatility.
Gold prices dropped sharply on February 12, 2026, hitting a low of $4,915.74/ounce, after stronger-than-expected US labour market data raised concerns that the Federal Reserve (Fed) may not reduce interest rates soon, as many had hoped.
Spot gold fell 3.2%, touching its lowest level in nearly a week, while US gold futures for April delivery dropped by the same margin to $4,935.70/ounce. The decline was prompted by the US jobs data released on February 11, which showed a higher-than-expected rise in non-farm payrolls in January and a decrease in the unemployment rate.
Fawad Razakzada, market analyst at City Index and FOREX.com, noted that the recent volatility in the gold market led many investors to set stop-loss points just under the $5,000/ounce mark, which intensified the selling pressure. This pushed prices down even further.
The stronger US job market, with 130,000 new non-farm jobs created in January, reduced hopes for an imminent Fed rate cut, as policymakers may feel less pressure to act quickly. This has a direct impact on gold, as it is a non-yielding asset, and higher rates make gold less attractive.
Global gold and metals in turmoil
Alongside gold’s sharp drop, other precious metals were also hit hard. Silver prices fell by 10.8% to $74.95/ounce, while platinum dropped 6.2% to $2,030.25/ounce, and palladium plunged 4.75% to $1,618.84/ounce.
However, there were signs of recovery on February 13, 2026, as spot gold rebounded by 0.1% to $4,926.79/ounce in the early hours, with silver rising by 0.6% to $75.72/ounce. Platinum and palladium also saw slight increases.
Despite the recent declines, many analysts believe gold will likely rise again in 2026, driven by geopolitical tensions, concerns over the Fed’s independence, and continued shifts in traditional asset allocations. Major banks such as BNP Paribas expect gold prices to reach $6,000/ounce by year-end, with other institutions like Deutsche Bank and Goldman Sachs also predicting upward trends for the metal.
