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Gold Prices Crash 3% in 24 Hours, Drop Back Toward $4,900
Gold prices plunged sharply alongside silver, falling to their lowest level in a week as strong U.S. labor data fueled selling pressure across precious metals markets. The decline came as robust employment figures dampened expectations for near-term interest rate cuts by the Federal Reserve.
During Thursday’s trading session (Feb 12, 2026), global gold prices dropped 3.13% to $4,919.69 per troy ounce. The steep fall pushed bullion further away from the key psychological level of $5,000 per ounce and marked its lowest point in seven days.
As of Friday (Feb 13, 2026) at 06:45 WIB, spot gold slipped another 0.20%, trading at $4,909.99 per troy ounce.
Strong U.S. Jobs Data Weighs on Gold
Gold fell to nearly a one-week low on Thursday after stronger-than-expected U.S. employment data reduced hopes of imminent Federal Reserve rate cuts. The move below $5,000 per ounce intensified losses as selling momentum accelerated.
According to Fawad Razaqzada, market analyst at City Index and FOREX.com, heightened volatility prompted traders to place stop-loss orders around key technical levels.
“Because of the previous high volatility, many traders positioned stop losses below $5,000 or above $5,100 per ounce to protect their positions,” he explained.
“As prices moved lower, those stops were triggered beneath $5,000, creating a cascading effect that caused gold to drop rapidly,” he added.
Labor Market Strength Supports Higher Rate Outlook
Data released Wednesday showed the U.S. labor market started 2026 stronger than anticipated, reinforcing expectations that policymakers may keep interest rates elevated for longer.
Nonfarm payrolls rose by 130,000 in January
December figures were revised down by 48,000
Unemployment edged lower to 4.3%
Initial jobless claims fell to 227,000 in the week ending Feb 7
A resilient labor market strengthens confidence in the U.S. economy and gives the Federal Reserve room to maintain higher borrowing costs to ensure inflation continues to ease. Elevated interest rates typically pressure non-yielding assets like gold, reducing their attractiveness to investors.
Inflation Data in Focus
Market participants are now awaiting U.S. inflation data due Friday for further clues on monetary policy direction.
Peter Grant, vice president and senior metals strategist at Zaner Metals, noted expectations that headline inflation could slow from 2.7% to around 2.5% — potentially even 2.4%.
Such a decline could revive speculation of rate cuts and provide renewed support for gold prices.