Gold Rebounds Above $4,100 After Strong US Jobs Report Weighs on Price
Gold recovered to around $4,100 in early Asian trade on November 9, 2026, after a strong US jobs report lifted rate-hike bets. Traders now watch US inflation data and Washington's defense budget fight for the next move.
Gold rebounds above $4,100 in early Asian trading on Monday, November 9, 2026, recovering some lost ground after a strong US jobs report knocked it lower. Spot gold (XAU/USD) had slipped on Friday's data.
The bounce is fragile. Strong employment numbers push up the dollar and Treasury yields, which usually weigh on gold.
Jobs report beats forecasts
The US economy added 165,000 jobs in October, up from 60,000 in September, the US Bureau of Labor Statistics reported on Friday. Economists had expected 65,000. The unemployment rate fell to 4.1% from 4.2%.
The data reinforced expectations that the Federal Reserve could keep interest rates higher for longer. Higher rates raise the opportunity cost of holding gold, which pays no interest.
Traders now see 79.6% odds that the Fed will raise rates in December, according to the CME FedWatch tool. That compares with 72.8% before the jobs report.
"Gold gapped lower on a stellar employment report (that was) strong across the board, but is trying to claw back higher," said independent metals trader Tai Wong. "This is a litmus test for this week's rally."
Washington politics lends support
Speculation that incoming Democrats will push to end the Iran war helped gold recover. Democrats secured majorities in both the House and Senate. They are strongly opposing President Donald Trump's proposed $1.5 trillion defense budget and appear determined to block it.
A person familiar with the discussions said Democrats are likely to approve only a figure around $1 trillion. They do not want to be seen approving continued funding for the war against Iran.
Stock selloff clouds the picture
Analysts at OCBC said a deepening selloff in AI and semiconductor stocks "warrants some near-term caution." If equity weakness triggers broader deleveraging, they warned, gold "may not be spared from liquidity-driven selling as investors raise cash."
OCBC also called gold's resilience during the equity selloff "encouraging." It said the metal may be regaining some safe-haven appeal after a recent correction and a reduction in speculative positioning.
The bank flagged next Tuesday's US consumer price index (CPI), a key inflation reading, as "another key test." It said oil prices remain an important driver of inflation and rate expectations.
On the daily chart, spot gold remains below its 100-day simple moving average, a widely watched trend line. The Relative Strength Index, a momentum gauge, stands at 50.30, which is neutral. That suggests the latest bounce lacks decisive momentum to challenge resistance above.
