CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
US English

Gold seesaws after unexpected US job gains

By Daniel Tyson

19:42, 4 February 2022

Stack of gold bars
Gold prices were down, then up Friday - Photo: Shutterstock

Gold steadily ticked along in the background this week, with Friday’s gains likely signaling the market will continue to see its future price hold above the key level of $1,800 (£1,330.23) an ounce.

Friday’s better-than-expected news that the US economy added 467,000 jobs in January, sent gold downward towards the $1,780-an-ounce mark Friday morning. However, the price shot back up in the afternoon.

April contracts on the Commodities Exchange Center were up $4.40 to $1,808.50 an ounce at 2:30 p.m. EDT.

In a week where interest rate increases dominated the news and financial markets, gold gaining value shows how weak optimism is in the world finance sector, Rupert Rowling, market analyst at Kinesis Money, told

Natural Gas

2.94 Price
+0.550% 1D Chg, %
Long position overnight fee -0.4453%
Short position overnight fee 0.4234%
Overnight fee time 21:00 (UTC)
Spread 0.0050

Oil - Brent

89.61 Price
-0.570% 1D Chg, %
Long position overnight fee 0.0507%
Short position overnight fee -0.0726%
Overnight fee time 21:00 (UTC)
Spread 0.040


21.01 Price
-0.060% 1D Chg, %
Long position overnight fee -0.0207%
Short position overnight fee 0.0125%
Overnight fee time 21:00 (UTC)
Spread 0.020

Oil - Crude

87.38 Price
-0.520% 1D Chg, %
Long position overnight fee 0.0590%
Short position overnight fee -0.0809%
Overnight fee time 21:00 (UTC)
Spread 0.030

“While gold would typically come under threat in an environment where interest rates are rising due to its lack of a (treasury) yield, its appeal as a haven asset at times of crisis and stock market plunges suggest that investors continue to see value in holding gold, and it is premature to write the economic recovery story,” Rowling said.

Run of negative rates

However, he said, traders don’t have to look too far for potential road bumps on this economic road to recovery.

After the Bank of England raised its rates to 0.5%, comments from the European Central Bank (ECB) on Thursday pointed to it soon following the UK’s lead and starting hiking rates too to tackle rising inflation. Goldman Sachs forecasted the ECB will raise rates twice this year, in September and December, bringing an end to a seven-year run of negative rates, Rowling said.

Related topics

Rate this article

Related reading

The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
Capital Com is an execution-only service provider. The material provided on this website is for information purposes only and should not be understood as an investment advice. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents. We do not make any representations or warranty on the accuracy or completeness of the information that is provided on this page. If you rely on the information on this page then you do so entirely on your own risk.

Still looking for a broker you can trust?

Join the 555.000+ traders worldwide that chose to trade with

1. Create & verify your account 2. Make your first deposit 3. You’re all set. Start trading