Gold Eyes Recovery After $5,000 Breakdown

Gold prices recovered modestly after breaking below the key $5,000 level for the first time in a week, stabilising near $4,950 as markets turned their focus to the upcoming U.S. CPI report. The rebound follows a sharp selloff triggered by stronger-than-expected nonfarm payrolls data, which reinforced the view that the Federal Reserve may keep rates higher for longer.

The strong labour market print pushed back expectations for the first rate cut, pressuring non-yielding assets such as gold. However, investors are now looking to inflation data for confirmation. A softer CPI reading could revive expectations for easing later in the year, potentially supporting bullion’s recovery.

Physical demand signals remain mixed. Indian markets saw gold flip to a discount amid volatility, while Chinese buying stayed firm ahead of seasonal demand. Technically, gold is consolidating between key moving averages, with the $5,000 level now acting as a psychological pivot.

Read more on how U.S. CPI data, Fed expectations and key technical levels could shape gold’s next move