Gold soars unfazed by strong US jobs data ahead of CPI

• Gold rebounds 0.69% despite significant US job additions, challenging Fed’s rate cut path.
• Gold recovers from post-labor report drop as investors weigh Fed’s cautious disinflation stance.
• Upcoming US inflation and retail sales data set to influence gold’s trajectory, Fed policy.

Gold price rebounded off daily lows on Friday, extending its rally for the fourth consecutive day as traders shrugged off a strong United States (US) Nonfarm Payrolls report. This tempered the Federal Reserve’s (Fed) concerns about the labor market, but not so much inflation as some officials acknowledged. The XAU/USD trades at $2,687, up 0.69%.

Bullion fell sharply after the US Bureau of Labor Statistics (BLS) revealed that the economy added an outstanding number of people to the workforce, topping 200K. As a consequence, the Unemployment Rate dipped, while investors priced in fewer interest rate cuts based on the fact that the economy continues to create enough jobs, while the disinflation process “halted,” according to the Fed’s latest minutes.