Gold below $4,100 as US nonfarm payrolls dominate headlines
ITF Team2 min read
Gold slipped to around $4,050 on 11/6/2026 after US nonfarm payrolls added 165K jobs, pushing the dollar higher and yields up to 4.88%.
Key takeaways
- Gold fell to about $4,050 on 11/6/2026, down 1.20% on the day.
- US nonfarm payrolls added 165,000 jobs in October, far above the 65,000 forecast.
- The US unemployment rate dropped to 4.1% from 4.2% in October.
- The 10‑year Treasury yield rose 4 basis points to 4.88% as the dollar index moved to 102.22.
Gold (XAU/USD) slipped below the $4,100 mark on Friday, 11/6/2026, after peaking at a two‑week high of $4,146 the day before. The metal was trading around $4,050, a 1.20% drop for the session, as the US dollar rallied on stronger‑than‑expected nonfarm payrolls data.
US jobs data fuels dollar strength and yields
The US Labor Department reported that October saw an addition of 165,000 jobs, more than double the 65,000 consensus estimate. September’s figure was also revised upward to 60,000 from 29,000. The unemployment rate fell to 4.1% from 4.2%, underscoring a resilient labour market.
These numbers give the Federal Reserve room to keep a tight monetary stance, reinforcing expectations of a possible rate hike in December. Higher rates make interest‑bearing assets more attractive, while gold, which yields no interest, loses relative appeal.
Currency and yield dynamics pressurise bullion
The US Dollar Index (DXY) rose to 102.22, up 0.62% on the day, as the greenback gained against its six‑currency basket. At the same time, the benchmark 10‑year Treasury yield climbed four basis points to 4.88%, reflecting the market’s reaction to the robust payrolls.
Gold’s inverse correlation with both the dollar and US yields meant the metal retreated sharply. The move was also amplified by a broader AI‑driven sell‑off in equities, which forced investors to free up cash, further draining liquidity from the safe‑haven metal.
Read also: Gold pulls back before NFP after its strongest week in two months
Technical picture on the 4‑hour chart
On the 4‑hour timeframe, XAU/USD stays above the 50‑ and 100‑period simple moving averages (SMAs), suggesting a short‑term constructive bias. However, the 200‑period SMA at $4,114 acts as a ceiling, with a horizontal resistance near $4,200 that could trigger a stronger bullish run if broken.
Support is found at the 100‑period SMA around $4,050 and the 50‑period SMA at $4,004. A deeper pullback could test the year‑to‑date low of $3,870.23, where buyers might step in to defend the uptrend.
Broader market backdrop
Oil prices have fallen about 12% this week, easing inflation pressures and giving central banks some relief. Yet geopolitical tension remains high after President Donald Trump’s remarks on the US‑Iran conflict, keeping risk sentiment fragile.
The combination of a strong dollar, rising yields, and equity market weakness creates a challenging environment for gold, even as the metal’s safe‑haven appeal remains intact.
What to watch next
Traders will focus on upcoming US CPI and PPI releases, as well as any Fed commentary that could shift rate‑hike probabilities. Key technical levels to monitor are $4,114 (200‑SMA), $4,200 (horizontal resistance) on the upside, and $4,004 (50‑SMA) or $3,870.23 on the downside.
- US CPI data due 11/13/2026
- Fed Chair remarks expected 11/14/2026
- Potential breakout above $4,200 could spark a new rally
- Break below $4,004 may open a test of the YTD low
Frequently asked questions
Why did gold drop after the US nonfarm payrolls report?
The payrolls added 165,000 jobs, far above expectations, signalling a strong labour market. This boosted the US dollar and lifted the 10‑year Treasury yield to 4.88%, both of which normally weigh on gold because the metal offers no yield.
What technical level could limit further gold losses?
The 100‑period SMA at $4,050 and the 50‑period SMA at $4,004 act as immediate support. A break below these levels could push the price toward the year‑to‑date low of $3,870.23.
Official data sources
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- Gold pulls back before NFP after its strongest week in two months
- Global market overview as AI fears and US jobs data dominate
- Fed's Williams says US economy resilient, warns inflation still high
- USD index recovery above 20‑day EMA ahead of US NFP
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This article is compiled from international market news for information only. It is not investment advice.